Updated Fishkill town audit out

http://www.osc.state.ny.us/localgov/audits/towns/2015/fishkillfollowup2013m188f.pdf

Interfund Advances Town officials should review all interfund advances and determine the actual amount owed each fund.

The Board should ensure that all interfund borrowings are paid in a timely manner. Status of Corrective Action: Not Implemented

Observations/Findings: We reviewed the Town’s schedule of interfund advances and found a balance of approximately $7 million in advances for the year ending 2014, indicating the advances were not properly repaid by the end of the fiscal year in which they were made. Additionally, in the 2014 and 2015 interfund advance schedule, many accounts had negative balances due to accounting errors. For example, the “Due From” accounts in 2014 included negative balances totaling $740,000, indicating that interfund advances were not properly recorded. Therefore, Town officials cannot know what is actually owed between multiple funds. Further, the Town’s corrective action plan submitted in response to our 2013 audit1 indicated that Town policy calls for interfund advances to be authorized and approved by the Board, properly recorded and repaid by the end of the fiscal year in which the advance was made. Our follow-up review found that the Board has not established such a policy.

Sewer Extension and Affordable Housing Trust Funds The Board should determine how the $758,000 of funds intended for the sewer extension and the $23,750 balance of funds intended for use in the affordable housing trust fund were actually expended. The funds should be replaced and used for their intended purpose.

Status of Corrective Action: Not Implemented 1 Town of Fishkill: Fiscal Stress (Report No. 2013M-188) 2 Observations/Findings: The Town recognized and reported the $758,000 as restricted fund balance in the 2012 and 2013 independent audit report; however, it was not reported as restricted fund balance on the Town’s 2013 annual update document submitted to the Office of the State Comptroller. The $23,750 was not correctly posted to the housing trust fund. The Town’s independent auditors, during the 2013 audit, suggested an adjusting journal entry be made as a receivable from the townoutside-village fund (where the amount was originally posted) and credited into unreserved fund balance. While the Comptroller indicated that he made the entry, he has not provided information to support this.