ALBANY – A state comptroller’s office audit of the Town of Philipstown Water District billing found the board did not provide proper oversight over the water clerk or segregate her duties.
The audit found the board “did not adopt adequate policies and procedures or implement compensating controls, such as providing oversight of the clerk’s incompatible duties.” It said, “The nature of duties assigned to the clerk created substantial weaknesses in internal controls and no evidence was presented to us to indicate that the board reviewed her work to reduce the effect of those weaknesses.”
Auditors said the clerk operated the water district from her home using her personal computer and performed all phases of water transactions, including bill, receiving payments and depositing receipts.
The report found accounts were improperly billed. In one review, 43 payments totaling $12,977 were not recorded. In another review, 11 customer deposits totaling $2,722 were not recorded and four customers had incorrect account numbers on the deposit spreadsheet.
The audit recommended that the board segregate the clerk’s financial duties or implement compensating controls such as providing additional oversight; review reports of amounts billed, collected and re-levied on the tax roll to assure that all billings were collected and deposited or re-levied; ensure the unpaid water rents re-levy list is complete and accurate, and attempt to recoup amounts not collected; and amend the town code to include a 10 percent penalty for nonpayment or delinquent water rents to comply with town law.
