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Appendix C: Audit Methodology and Standards We obtained an understanding of internal controls that we deemed significant within the context of the audit objective and assessed those controls. Information related to the scope of our work on internal controls, as well as the work performed in our audit procedures to achieve the audit objective and obtain valid audit evidence, included the following: • We reviewed Board meeting minutes and interviewed the Supervisor, bookkeeper and two of the four other Board members to gain an understanding of the Town’s operations, the Supervisor’s financial recordkeeping and reporting and the Board’s oversight regarding annual audits, filing of the AFR and review of financial reports. • We performed an annual audit of the Supervisor’s records selecting certain categories for the fiscal year ended December 31, 2024, using OSC guidance available to Board members. We judgmentally selected the categories more significant to our audit objective for review, including cash receipts, cash disbursements, bank reconciliations, interim financial reports, and payroll for the general and highway funds. We excluded records for receivables, investments, deposit protections, indebtedness, and property from our testing as they were not significant to our audit objective. Using the CFO checklist9 we made observations and reviewed: • All checks received for deposit and source documentation on file for all 12 cash receipts in December 2024 totaling $227,808 to determine whether the Supervisor deposited the checks into the Town’s bank accounts in a timely manner, as required, and recorded the receipts in the accounting records. We judgmentally selected the last month of the 12-month fiscal year 2024 to determine whether records were up to date. • All 84 cash disbursements totaling $118,222 for July 2024 to determine whether they were Board-approved, adequately supported and for proper Town purposes. Canceled check images from the bank and Board-audited claim voucher packets were viewed to verify and determine whether the payee, amount and purpose were accurate. July 2024 was selected because it had the highest check disbursement amount of the 12-month fiscal year period. • All of the Supervisor’s bank statements for fiscal year 2024 to determine whether electronic payments were made by the Town. No electronic payments were observed. • The payroll records for the last pay period of fiscal year 2024 – December 19 for 10 monthly pay employees and December 26 for 10 bi-weekly pay employees and compared the amount paid to Town employees with Board-approved salary schedules and collective bargaining agreements to determine whether the Town’s payroll, paid by the Supervisor, was in accordance with the Board-approved pay rates. We judgmentally selected all 10 monthly pay salaried employees, and one to two hourly employees from seven Town departments based on their job titles and pay rates to total 10 bi-weekly pay employees. 9 See Appendix A for Additional Resources – General Recordkeeping and CFO Checklist Of f ic e of t he New York State Comptroller 13