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Appendix B: Audit Methodology and Standards We conducted this audit pursuant to Article V, Section 1 of the State Constitution and the State Comptroller’s authority as set forth in Article 3 of the New York State General Municipal Law. To achieve the audit objective and obtain valid audit evidence, our audit procedures included the following: ll We interviewed Village officials, employees and members of the finance committee and reviewed Board meeting minutes, resolutions and financial documents to gain an understanding of sewer operations and officials’ oversight responsibilities regarding budgetary and fiscal control. ll We prepared budget-to-actual comparisons for revenues and appropriations to determine whether adopted budgets were reasonable and whether specific revenues were consistently and significantly overestimated. ll We analyzed the Village’s financial records for fiscal years 2014-15 through 2018-19 to determine the results of operations. ll We reviewed sewer rate increases to determine their impact on revenues and whether they were sufficient to meet related expenditures. ll We reviewed the DOCCS contract language to determine the basis for the annual contribution. ll We reviewed the adopted 2019-20 budget to determine whether revenue and appropriation estimates were reasonable. ll We recalculated material annual revenues (residential, DOCCS and outside haulers) using actual billings, compared them with reported revenues and discussed any large variances with officials. ll We reviewed certain accounting entries affecting revenues and expenditures to verify whether they were supported. We discussed erroneous or missing entries with officials and modified our estimated revenues and expenditures based on this review. ll We identified and discussed with officials shared service cost procedures and percentage allocations that occurred during the 2014-15 through 2019-20 fiscal years. We reviewed the actual costs for shared service expenditures including health insurance, workers’ compensation insurance, retirement, Social Security, unallocated insurance (e.g., general liability), administrative (meter reading and bookkeeping), vehicle replacements, building upgrades, a consulting service agreement and one mileage reimbursement (due to the material amount). We recalculated allocations to the sewer fund using adopted budgets and actual expenditures to determine whether the Village’s allocation methods were reasonable. ll We used available timekeeping records including time sheets, calendars and monthly reports to the New York State Department of Environmental Conservation to determine the number of recorded hours of sewer Of f ic e of t he New York State Comptroller 9