A new state audit of North Castle found that the town has adequate and effective internal controls over cash disbursements with the exception of bank reconciliations, which hadn’t been prepared since May 2012. The audit, which covers the period Jan. 1, 2011 to July 31, 2012, was released by the state Comptroller Thomas DiNapoli’s office yesterday. The office extended its review of bank reconciliations to Nov. 16, 2012.
Not doing bank reconciliations “creates a risk that errors or fraudulent transactions could occur without detection,” according to the audit. The town’s deposits totaled $26 million during the period studied. The town’s comptroller is responsible for auditing claims, approving bank transfers and reconciling bank accounts. The comptroller and the bookkeeper share the responsibility of reconciling bank accounts, the audit said.
North Castle, which includes the hamlets of North White Plains, Armonk and Banksville, was without a comptroller for approximately four months — from June to September 2012, the audit found. The supervisor audited the claims during that period, including payroll expenditures and bank transfers. The town hired a new comptroller in September, but as of Nov. 16, no additional reconciliations had been performed.
In a March 15, 2013 response to the audit, North Castle Supervisor Howard Arden said the town’s comptroller and bookkeeper are reconciling the bank accounts monthly and would continue to do so going forward.
The comptroller opened up two new accounts — a warrant and a payroll account — that cash disbursements will flow through. Deposits will continue to go to the main account, and money will be transferred into the warrant and payroll accounts as needed, Arden wrote.
The town has 170 employees, and its appropriations for the 2012 fiscal year are roughly $31 million.