Publisher's summary
The Board and Village officials did not establish adequate internal controls over Department cash receipts. The Board did not adopt written cash receipt policies, cash receipt duties were not properly segregated and the Supervisor did not adequately oversee the cash receipt function. As a result, the attendant had almost complete control over the cash receipts without adequate oversight. From August 1, 2011 through November 30, 2017, we reviewed approximately 2,000 receipts issued by Department employees for cash collections totaling approximately $264,000. We estimate that additional unreceipted cash of $14,000 was collected for swim gate fees during this period. However, the attendant reported cash collections of approximately $107,700, a cash shortage of more than $170,000. During this period, less than half the amount of cash receipted by employees was remitted to the Treasurer. OSC's Division of Investigations in conjunction with the Erie County District Attorney's Office jointly investigated this matter. In October 2018, the attendant admitted stealing more than $150,000 from the Village and altering public records from 2011 through 2017. She pleaded guilty to grand larceny, false filing and official misconduct in October 2018 and was sentenced in March 2019. As part of her sentence, she repaid the Village $156,374.
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Report Highlights
Village of Hamburg
Audit Objective
Background
Determine whether Recreation Department
(Department) cash receipts were properly recorded, The Village of Hamburg (Village) is
reconciled and remitted in a timely manner. located in the Town of Hamburg in Erie
County (County).
Key Findings The Village is governed by an elected
ll From August 1, 2011 through November 30, 2017, Board of Trustees (Board) composed
the recreation attendant (attendant) did not remit of four Trustees and the Mayor. The
Department cash collections of approximately Board is responsible for the general
$170,000 for deposit. management and control of Village
finances and safeguarding assets.
ll OSC’s Division of Investigations in conjunction
with the Erie County District Attorney’s Office The Mayor is the Village’s chief
jointly investigated this matter. In October 2018, executive officer and appoints all non-
the attendant admitted stealing more than elected officers subject to the Board’s
$150,000 from the Village and altering public approval. The Village Treasurer1
records from 2011 through 2017. She pleaded (Treasurer) is the chief fiscal officer
guilty to grand larceny, false filing and official and is responsible for maintaining
misconduct in October 2018 and was sentenced custody of all funds.
in March 2019. As part of her sentence, she
repaid the Village $156,374. The Department provides a variety
of recreation programs and services
ll The Board did not ensure there were adequate to residents and the surrounding
controls over Department cash receipts. The community. A Recreation Supervisor
attendant performed the majority of Department (Supervisor) oversees operations with
bookkeeping and cash reconciliation functions the assistance of three full-time office
with minimal oversight. staff.
Key Recommendations Quick Facts
ll Adopt policies and develop procedures for the 2016-17 Department Revenue $313,000
collection and accounting of Department cash
2017-18 Department Budget $720,000
receipts.
Population 9,590
ll Ensure that cash collections are properly
receipted, documented and accounted for.
Village officials agreed with our recommendations Audit Period
and have initiated or indicated they planned to initiate August 1, 2011 – December 20, 2017.
corrective action. We extended our audit scope period
back to June 1, 2010 to review cash
collections and deposits.
1 The Treasurer’s official title is Village Administrator/Clerk-Treasurer
Of f ic e of t he New York State Comptroller 1