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

The Village of Water resistant is struggling with economical issue, in accordance to the state Legislative Auditor’s Place of work.

An audit submitted by the accounting firm Silas Simmons from Natchez, Mississippi, identified several major problems with the village’s accounting procedures and at minimum one scenario of alleged criminal wrongdoing.

The unbiased auditor documented that officers found out the village clerk had applied $10,000 in cash from revenue taxes and occupational licenses to pay for individual fees.

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The clerk, Erica Crump, who is no lengthier employed 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 enough funds in its purchaser deposit bank account to go over client deposits, the village’s basic fund expenses exceeded the budgeted amount by 29%, and the village failed to remit gross sales taxes from 2018 by means of 2020.

The audit of the fiscal 12 months ending June 30, 2021 mentioned that the village has begun building payments on its again income taxes, but however was not caught up as of fiscal year-finish.

“We recommend that the Mayor and Board follow extra oversight in excess of the day to working day functions of the Village to assist alleviate the threat,” the audit go through.

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The report had various other conclusions, which includes:

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

• Inadequate segregation of responsibilities in excess of the village’s funds.

• Late submission of the village’s audit report.

• Failure to comply with bond covenants.

The auditor recommended “that the Village and Board proceed to offer the required oversight in its current interior management strategies, specially in the spots of funds receipts, collection receipt things to do, recording of those people receipts, depositing funds gathered, and evaluate of checks written.”

Story proceeds

According to the audit, the budgeted sum of basic fund expenditures was $298,650 and the true expenditures have been $358,090. Point out regulation demands that expenses not

exceed the price range by much more than 5%.

“The general ledger and subsidiary ledger are each in want of consideration and correcting,” the audit read. “The harmony of the quantities owed to the Village by the consumers totals $207,630, in accordance to the consumer harmony report. The income collections in the subsequent month had been $20,571. At the identical time, the general ledger indicated the accounts receivable have been $283,278 in advance of an adjustment proposed by the auditor was made.”

The auditor pointed out that no corrective action had been taken as of June 30, 2021.

“Simply because of the tiny sizing of the Village and the tiny number of employees, quite a few of

the essential aspects of fantastic inner controls cannot often be achieved to make certain

ample safety of the Village’s belongings,” the audit claimed.

Scott Yoshonis is the editor of The News-Star. He can be attained at syoshonis@gannett.com.

This write-up at first appeared on Monroe Information-Star: Village of Water-resistant the sufferer of embezzlement, poor accounting