Audit Objective

Determine whether the Town of Jay (Town) Supervisor maintained complete, accurate and timely accounting records and reports to allow the Town Board (Board) to effectively manage the Town’s financial operations.

Key Findings

The Supervisor did not maintain complete, accurate and timely accounting records, and inadequate financial reports were provided to the Board. As a result, the Board lacked reliable records and reports to manage the Town’s financial operations.

• Of the 15 asset and liability accounts we reviewed as of December 31, 2021 and October 31, 2022, five accounts were overstated by a total of $19,037 and 13 accounts were understated by a total of $269,353.
• Of the 10 revenue accounts we reviewed as of December 31, 2021 and October 31, 2022, two accounts were overstated by a total of $927,546 and two accounts were understated by a total of $18,317.
• Of the 10 expenditure accounts we reviewed as of December 31, 2021 and October 31, 2022, two accounts were overstated by a total of $182,370 and two accounts were understated by a total of $6,091.
• Seven capital projects were completed but not closed in the accounting records, and bank reconciliations were not prepared monthly or properly prepared for all bank accounts.

Key Recommendations

• Maintain complete, accurate and timely accounting records and close completed projects.
• Prepare and review bank reconciliations monthly.
• Provide the Board with adequate financial reports.

Town officials generally agreed with our recommendations and have initiated, or indicated they planned to initiate, corrective action.