CANTON - Responding to a critical state audit, the village board has approved a corrective acion plan that includes contracting with an outside accountant to assist Village Clerk Sally L. Noble.
The four-page document also requires the village boards audit committee to meet on a monthly basis to review bank reconciliations.
A report released by the sate Comptrolers Office in August cited several instances of poor record keeping and also faulted the village for allowing its fund balance to exceed $2.4 million in May 2011.
During a special meeting this week, the board also a adopted a contract agreement with John C. Parcell IV, a certified public accountant.
Mr. Parcell, Canton, will be paid a maximum of $5,000 to assist the village with updating its financial software, preparing annual financial reports required by the state and assisting Mrs. Noble with bank reconciliations.
He has already been paid $1.450 for completing the villages financial report for the 2008-09 fiscal year and will receive a maximum of $3,550 more, according to the contract.
His duties will include preparing bank reconciliations for the general fund, sewer and water fund, and trust and agency fund from January 2011 to May 2012.
Mrs. Noble, who also serves as village treasurer, will be assisted by Mr. Parcell in the transition to Quickbooks software used to maintain financial records and payroll. The corrective plan will be sent to the state Comptrollers Division of Local Government and School Accountability, Albany.The plan is signed by Mayor David C. Curry.
Other corrective actions listed in the plan:
■ The board has authorized the upgrade of its Quickbooks program for village payroll and reports.
■ Mrs. Noble will include the result of each months bank reconciliation with her monthly report to the board. Her report and the audit committees report will be examined by trustees at their monthly meeting.
■ A report regarding the status of the annual financial report will be provided by Mrs. Noble at or before the boards final meeting of the 2012-13 fiscal year. If an extension is needed, the board will be made aware of the reasons.The board will also receive a copy of the annual financial report for review and approval before it is filed with the comptrollers office.
■ Effective this fiscal yearm the board will conduct an annual aduit and will consider authorizing an independent public accountant audit on an annual basis.
*As part of his work for the village, Mr. Parcell will provide the board with an accurate statement of the unreserved fund balance through the current date. Moving forward, the clerk/treasurer will provide the board with a monthly fund balance report.
■ Board will annually review and determine the best use of surplus funds. This spring the board agreed to allocate $100,000 from its fund balance to fund road projects and economic development.
■ Board will annually review its sewer rates during the budget process to ensure that sufficient revenue is generated to cover expenses.