Determine whether the Town of Preble (Town) Board (Board) and Town Supervisor (Supervisor) provided adequate oversight of non-payroll disbursements.
The Board and Supervisor did not provide adequate oversight of non-payroll disbursements. As a result, there is an increased risk that errors or irregularities could occur and remain undetected and uncorrected. Specifically:
- Town officials did not adequately segregate the bookkeeper’s duties or implement mitigating controls.
- The Board could improve its annual audit of the Supervisor’s records and reports.
- Segregate duties over the non-payroll disbursements process or implement effective mitigating controls to ensure all non-payroll disbursements are for legitimate Town purposes.
- Conduct a thorough annual audit including reviewing bank reconciliations, bank statements, canceled check images and supporting documentation for disbursements.
Town officials generally agreed with our recommendations and indicated they plan to initiate corrective action.