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Paul “Andy” Stewart
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Tab 11
He recommended all restricted cash be separated from general operating funds and monitored on
a monthly basis.
Stewart indicated that restricted cash will be balanced on a monthly basis with state money
directly deposited into a bank account to ensure correct documentation. The audit said lack of
internal control over reporting how much money the town has compared to budgeted amounts
illustrated that errors were not caught and corrected in a timely manner.
For example, the general fund and enterprise fund beginning balance did not agree with the
adopted budget. Detailed listings how much the town actually paid out of each fund did not agree
with the books. Stewart said a monthly checklist will be used to make sure the budget agrees
with the reporting of actual expenses.
A number of payroll-related concerns were also addressed in the report, indicating that internal
control procedures related to payroll and human resources were not working, leaving the town
open to undetected errors or fraud.
These are:
Personnel files did not include enough documentation to validate an employee's rate of
pay.
Sick and vacation time were not taken in required increments.
Vacation time was not properly awarded.
Calculation of year-end accrued paid absences was incorrect.
Stewart said he is currently separating duties associated with payroll, with one employee
inputting data while another makes changes to employees and verifies payroll after calculation.
Other recommendations include balancing utility billing ledgers to the general ledger and double
checking blank checks upon arrival before storing them in a secure location with limited access.
Stewart said he is already correcting concerns outlined in the audit.
"I think the audit encompasses two different assets One is the finances. The town is in a better
financial position than we were several years ago when the town was in a state of financial
emergency. There's no longer a financial emergency," he said. "There are several items that were
identified in the management letter that are being addressed. Overall, I'm comfortable with the
town's finances."
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