Village of Nelliston - Payroll and Accounting Records (2018M-162)

Issued Date
December 14, 2018

[read complete report - pdf]

Audit Objective

Determine whether the Village accurately paid salaries and wages and adequately monitored and recorded leave accruals and usage.

Determine if the Clerk-Treasurer maintained timely and complete records and reports to allow the Board to properly manage the Village’s finances.

Key Findings

  • The Clerk did not withhold health insurance contributions totaling $5,392 from the Superintendent’s pay for the period March 2016 through February 2018.
  • The Superintendent did not maintain his leave accruals according to the compensation agreement and employee handbook.
  • The Clerk did not maintain adequate accounting records and failed to provide financial information to the Board.

Key Recommendations

  • Consult with the Village Attorney to recoup the Superintendent’s unpaid health insurance premium.
  • Provide appropriate oversight to ensure the Superintendent maintains his leave accruals accurately.
  • Maintain adequate up-to-date accounting records and provide financial information to the Board.

Village officials generally agreed with our recommendations and indicated they planned to initiate corrective action.