2011 - Town of Warner

POLICE ASSOCIATION FUNDSObservationDuring the audit, we noted a savings account included on a “summaryof accounts” included with the Town’s December 2010 bank statement.We were able to identify all of the accounts listed, except for one account.It was later determined that this account was established forthe police association. This account has a value of approximately $900as of December 31, 2010 and was not included in the scope of theannual audit.ImplicationInternal controls over the financial activities of the Town are weakenedwhen outside entities are allowed to establish bank accounts using theTown’s tax identification number.RecommendationWe recommend that the Town’s Treasurer obtain a complete listing ofall of the Town’s cash accounts from the bank on a regular basis toensure that no accounts were opened using the Town’s tax identificationnumber without the proper authorization. We also recommendthat any outside organization what wishes to perform fund-raising activitynot be allowed to establish bank accounts with the Town’s taxidentification number.*******This communication is intended solely for the information and use ofmanagement and the Board of Selectmen and is not intended to be andshould not be used by anyone other than the specified parties.Respectfully submitted,Vachon Clukay & Company PC23