Audit shows Village of Waterproof the victim of embezzlement, poor accounting practices

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The Village of Water-proof is dealing with economic problem, according to the condition Legislative Auditor’s Office environment.

An audit submitted by the accounting firm Silas Simmons from Natchez, Mississippi, learned various significant concerns with the village’s accounting techniques and at least just one situation of alleged legal wrongdoing.

The impartial auditor reported that officials found out the village clerk had utilised $10,000 in dollars from sales taxes and occupational licenses to shell out for own expenses.

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The clerk, Erica Crump, who is no longer used by the village, was arrested, and the situation was ongoing as of the date of the report, according to the auditor.

The auditor also noted that the village did not have plenty of dollars in its shopper deposit bank account to go over shopper deposits, the village’s typical fund expenses exceeded the budgeted sum by 29%, and the village unsuccessful to remit income taxes from 2018 as a result of 2020.

Audit

Audit

The audit of the fiscal calendar year ending June 30, 2021 observed that the village has begun earning payments on its again profits taxes, but continue to was not caught up as of fiscal 12 months-stop.

“We recommend that the Mayor and Board practice more oversight about the day to day functions of the Village to help alleviate the chance,” the audit read.

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The report had various other results, which include:

  • Failure to reconcile the common ledger with subsidiary ledgers for the utility fund accounts receivable and the customer meter deposits account.

  • Inadequate segregation of duties around the village’s finances.

  • Late submission of the village’s audit report.

  • Failure to comply with bond covenants.

The auditor suggested “that the Village and Board go on to present the required oversight in its current inner command techniques, specifically in the locations of money receipts, collection receipt actions, recording of individuals receipts, depositing resources collected, and evaluate of checks prepared.”

In accordance to the audit, the budgeted quantity of general fund expenses was $298,650 and the real expenditures had been $358,090. Condition law demands that expenses not

exceed the finances by a lot more than 5%.

“The general ledger and subsidiary ledger are each in have to have of consideration and correcting,” the audit study. “The stability of the quantities owed to the Village by the prospects totals $207,630, in accordance to the client equilibrium report. The money collections in the subsequent month were being $20,571. At the same time, the standard ledger indicated the accounts receivable ended up $283,278 prior to an adjustment proposed by the auditor was manufactured.”

The auditor mentioned that no corrective action experienced been taken as of June 30, 2021.

“Since of the smaller dimensions of the Village and the smaller quantity of workers, lots of of

the important elements of great internal controls simply cannot generally be obtained to make sure

satisfactory defense of the Village’s belongings,” the audit said.

Scott Yoshonis is the editor of The News-Star. He can be arrived at at [email protected].

This report originally appeared on Monroe Information-Star: Village of Water resistant the sufferer of embezzlement, lousy accounting

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