Purpose of Audit
The purpose of our audit was to evaluate the Authority’s procedures over solid waste and recycling charges and determine if host community fees were properly disbursed for the period July 1, 2015 through August 31, 2016.
The County of Franklin Solid Waste Management Authority is an independent public benefit corporation established to plan, develop and construct solid waste management facilities and to contract with Franklin County, other municipalities, state agencies, public corporations or individuals within or outside the County, for the purpose of receiving, treating and disposing of solid waste. The District is governed by a seven-member Board of Directors appointed by the County Legislature. Budgeted operating appropriations for the 2016-17 fiscal year were approximately $6.1 million.
- The cash handling procedures policy to provide guidance for employees involved in the billing and collection of solid waste and recycling charges was inadequate because it was not comprehensive and the procedures included in the policy were not always adhered to.
- Authority officials also did not generate and review voided-receipt and adjustment reports from the computerized systems or adequately document the reasons for these transactions.
- For 20 percent of the daily collections reviewed, the amount of collections recorded did not agree with the corresponding deposits made.
- Amend the cash handling procedures policy to include additional guidance over solid waste and recycling charges and ensure that procedures are performed as intended by the policy.
- Designate an individual independent of the billing and collection process to generate and review voided-receipt and customer account adjustment reports to verify that the corresponding voided receipts and adjustments are for appropriate purposes and adequately documented.
- Routinely compare the amounts collected as recorded in the system and on manual receipts with the amounts deposited and investigate and resolve any discrepancies.