Village of Liberty - Internal Controls Over Financial Activities (Sullivan County)
The mayor did not ensure that all adjustments to water and sewer accounts were appropriate and sufficiently supported. The deputy clerk adjusted the individual customer accounts; however, the accounting software could not provide a report summarizing the adjustments. The board also cannot be assured that all real property taxes were properly collected, recorded, and enforced. During the audit period, auditors found that the clerk/treasurer was responsible for all aspects of property tax collection and enforcement. She was the only user with access to the third-party property tax software and had the capability to add, modify, or delete bills, as necessary. Finally, the mayor did not ensure that the clerk/treasurer disbursed funds for appropriate non-payroll related expenses.