Summary Comparison of Report of Examination Findings
Office of the State Comptroller
Audits of the Town of Rochester
January 1, 1989 to December 31, 2000
Fiscal Year Ended
December 31, 1989Filed March 11, 1991 / Fiscal Year Ended
December 31, 1992
Filed April 30, 1993 / January 1, 1995 to
April 4, 1996
Filed November 22, 1996 / January 1, 1999 to
December 31, 2000
Filed September 7, 2001
General Comments / “We strongly urge the town board to prepare a corrective action plan which would be available for public review in the town clerk’s office and the Office of the State Comptroller.” / “Please note of the nine findings in the report, six findings were similar to those contained in our prior Report of Examination issued March 11, 1991. / “Please note that of the four findings in this report, four findings are similar to those contained in our prior Report of Examination issued January 28, 1994. / “We limited the scope of our audit to a review of the chief fiscal officer’s records and reports for the [audit period], and corrective action since our prior [Report] dated November 22, 1996.
Financial Reporting /
- Total cash understated $4,813
- General Fund receivables understated $46,607.
- General fund payables understated $20,092
- Highway fund payables
- understated $14,367
- Due to and Due from other funds accounts not in balance
- Special Assessments receivables and deferred revenues of $30,400 not reported
- Bond Anticipation Notes payable understated $18,400
- Certain bank accounts were not reconciled, understating cash by $4,566
- Two capital projects were not closed on a timely basis.
- Notes to financial statements were not included in the town’s annual financial report.
- Bank accounts were not reconciled and cash was understated by $30,190.
- Bank reconciliations were not included in the annual financial report.
- General ledgers were not maintained for capital projects, general fixed assets and general long-term debt account groups.
- Cash receipt and disbursement journals were not maintained for the capital projects fund.
- Accounts payable for general and highway funds of $16,432 and $38,075 respectively were not reported.
- A general fund receivable of $10,646 was not reported.
- Interest earnings were understated [by $10,000]
- A capital projects fund receivable of $149,846 was not reported.
- A capital projects fund receivable of $178,628 was not reported.
- A bond anticipation note payable of $200,000 for highway equipment was not reported.
- The capital projects fund receivable was understated by $12,500
- Capital projects fund liability was overstated by $48,047
- Notes to financial statements were not included in the annual financial report.
- General journals, general ledgers and revenue and expenditure ledgers had not been posted.
- General ledgers were not maintained for the general fixed assets and general long-term debt account groups.
- Cash receipts journals had not been posted for the period September 1, 2000 through December 31, 2000.
- Cash receipt and cash disbursement journals were not maintained for the capital projects fund.
- A similar finding appeared in our prior report.
Supervisor’s Monthly Report / “We found no indication that the supervisor provided the town board with detailed monthly statements of moneys received and disbursed by him.” / We found no indication that the supervisor provided the town Board with detailed statements of moneys received and disbursed by him for the 2000 fiscal year.
Annual Accounting / “There was no indication that town officers and employees who had received and disbursed moneys on behalf of the town had submitted their books and records for examination by the town board.” / “The Town Board did not audit the books and records of town officers or employees who had received or disbursed moneys on behalf o the town. There was no indication that town officers and employees who had received or disbursed moneys on behalf of the town had submitted their books and records for examination by the Town Board.
A similar finding appeared in our prior Report. / There was no indication that town officers and employees who had received or disbursed moneys on behalf of the town had submitted their books and records for examination by the Town Board.
A similar finding appeared in our prior Report. / The town supervisor did not file the 1999 annual financial report until June 26, 2000. [General municipal law requires the supervisor to file within 60 days of end of fiscal year].
Fixed Asset Records / “The town does not maintain an up to date inventory of fixed assets. In addition property record cards were not maintained. A similar comment appeared in our prior Report” / “The town does not maintain an up to date inventory of fixed assets. In addition property record cards were not maintained. A similar comment appeared in our prior Report” / The town does not maintain adequate control over its fixed assets (of $1,094,000)
A similar finding appeared in our prior Report. / The town does not maintain general ledger accounts for the general fixed assets account group.
The fixed asset inventory records had not been updated since 1997. However, these inventory records were in the process of being updated.
A similar finding appeared in our prior Report.
Vehicle Fuel / “In our review of procedures for controlling the purchase, and usage of fuel, we found that perpetual inventory records were not maintained.” / The town does not maintain perpetual inventory records for its fuel stock. “In our review of procedures for controlling the purchase, and usage of fuel, we found that perpetual inventory records were not maintained.” / The town maintains fuel storage tanks for the bulk storage of fuel for use by town vehicles. At August 13, 1996, in our review of procedures for controlling the purchase, and usage of fuel, we found that perpetual inventory records were not maintained.
A similar finding appeared in our prior Report. / The town does not maintain adequate control over the purchase and usage of its gasoline and diesel fuel.
A similar finding appeared in our prior Report
Cash Management / “No evidence was presented to indicate that the town had adopted a written investment policy.” “A similar comment appeared in our prior Report of Examination”
Pledged Collateral / “At December 31, 1989, the town had $130,727 on deposit” without evidence of collateral for the amount in excess of the FDIC limit. / At December 31, 1992, the town had $654,190 on deposit without evidence of collateral for the amount in excess of the FDIC limit.
Appropriation Control / Highway fund exceeded its budget by $46,205.
Competitive Bidding / “No record was presented to indicate that bids had been requested by public advertisement for the purchase of diesel fuel, which aggregated $15,555 during 1989.”
Account for Travel Advances / “In January 1989 six employees were advanced $400 each to attend the Association of Town’s conference. There was no indication that an accounting for these advances was made by the submission of itemized vouchers showing actual expenditures incurred at the conference.” / “In February 1992 five employees were advanced $345 each to attend the Association of Town’s conference. There was no indication that an accounting for these advances was made by the submission of itemized vouchers showing actual expenditures incurred at the conference.” A similar finding appeared in our prior Report.
Purchasing / “Our test of 35 purchase order/claims for compliance with the town’s written requisition procedures and sound internal control procedures, disclosed the following: 18 claims were processed without the issuance of a purchase order; 12 claims did not have signed delivery slips attached. Also, our review of checks issued for payment of the above mentioned claims disclosed that the town utilized a rubber signature stamp.”
Proceeds of Obligations / The town did not deposit the proceeds of a bond anticipation note in a special bank account, instead commingling the funds with other funds.
Payroll / One employee received an extra payroll check
- Three employees’ earnings and W2s were overstated because certain voided payroll checks were included as earnings.
- Two employee’s earnings records and W2s were understated because certain payroll checks were not included as earnings.
- Federal wages reported on Form W2 were overstated for all employees who are in Tier 3 and Tier 4 retirement system.
Accumulated Fund Balance / The town has accumulated an excessive fund balance in the general fund ($266,432 or 25% of 1993 budget)
“…There is no legal authority to carry excessive unreserved fund balances from year to year.”
Retirement Reporting / Our examination included a review of the town’s reporting to the NYS and Local Employee Retirement System. Based on our findings the retirement system notified the town that the days worked reported could not be confirmed, since a standard word day had not been established for the elected and appointed officials. Additionally, days worked calculations were incorrect for three employees.
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