getting organized… and staying there audit and retention preparation audits 7-393 fire proof 7-27...
TRANSCRIPT
GETTING ORGANIZED…
AND STAYING THERE
Audit and Retention Preparation
Audits 7-393 Fire Proof 7-27Retention/destruction 7-109
By Carla Hamel, CCMC & Arlene Boutin, CCMC
• ADDS• DELETES
OR SEPARATE BY TYPE• R, P, M OR S• CO’S• VETERANS• ELDERLY• PRORATES
ADJUSTMENTS
M4-460 Until Audited
BANK CODES
BINDERINDIVIDUAL COVER SHEETS
1. BANK NAME AND CODE2. ADDRESS3. CONTACT INFORMATION4. REFUND INFORMATION
BANK REQUEST LISTADDS/DELETES
M4-500 ESCROW CODING – 1 YEAR OR UNTIL AUDITED; WHICH EVER COMES LATER
BANKRUPTCY
4 HANGING FOLDERS
1. General Information2. Chapter 73. Chapter 114. Chapter 13
Within each hanging folder
1. Pending/proof of claim2. Dismissed/Discharged3. Non-applicable
M4-450 Bankruptcy – 1 year after date of closure
CONTRACTCONTACTSPROBLEMSMONTHLY
SUMMARY PACKM3-135 & 145
PAYMENTS RECEIPTS; 3 YEARS OR UNTIL
AUDITED – WHICHEVER IS LATER
Collection Agency
Conferences and Meetings
CONTRACTCONTACTSPROBLEMSMONTHLY
SUMMARY PACK
M3-145 PAYMENT RECEIPTS;
3 YEARS OR UNTIL AUDITED-WHICHEVER IS
LATER.
Credit Cards
TAXPAYERSM1-080 ROUTINE – 2
YEARS
TOWN ATTORNEY*DEPENDS*
YOUR LEGISLATIVE BODYM1-085
CORRESPONDENCE- POLICY-PERMANENT
Correspondence
TUMBLEWEED INFOSFILE.CT.GOV
CONTACT: GARY TRERICE
DMV DIRECT
OTHER RELATED INFORMATION
DMV
Department of Motor Vehicle
PUTONSERROR REPORTS
M4-550 - 1 YEAR FROM
DATE OF REPORT
TAKEOFFS
ERROR REPORTS
M4-550 - 1 YEAR FROM
DATE OF REPORT
Organizing Email
Review M1-125, M1-130 & M1-135
Expenditures
MaintenanceMembership
Meetings/trainingsMiscellaneous
Printing/bindingPublications
SuppliesTravel
LEGAL NOTICES(M4-540- 15 YEARS FROM
DUEDATE OF TAX)
RATEBILL/TAX WARRANTS(M4-570 - 15 YEARS FROM
DUE DATE OF TAX)
LEGAL OPINIONS(M1-185 PERMANENT)
ORDINANCES/PUBLIC ACTSSTATUTES
OFFICE POLICIES/PROCEDURES
Legal Information
Real Estate LiensPersonal Property Liens
Binder containing each lien or list of liens
Notate date, volume and page recorded in
Notate date, volume and page released in
(M4-630, M4-640, M4-650)
Binder containing each lien or list of liens
Notate date, & UCC filing number for filing
Notate date, & UCC filing number for releasing
Liens
BLANK RELEASES
FAXES(M1-080 –
CORRESPONDENCE, ROUTINE: INCLUDING FOI
REQUESTS)
OFFICE POLICIES & MANUAL
MISCELLANEOUS
ABSENCE FORMSVACATION FORMS
ACCIDENT FORMS
CERTIFICATESJOB DESCRIPTION
APPOINTMENTCOPY OF BOND
TIMESHEETS
Personnel
Post Office
FormsMailings
Permit informationMeter
PO Box
Final Posted Ratebooks
(M4-580) 15 years from due date
(M4-660)TAX REFUND REQUESTS
& REPORTS3 YRS OR UNTIL
AUDITED, WHICHEVER COMES
LATER
Refunds
Monthly budget reports
Quarterly reports
F -71 Quarterly survey of property tax collections from Dept of Commerce, US Census Bureau
Not on retention schedule but suggested 2-3 years.
REPORTS
Returned Checks
Outstanding returned checks
M3-135 &145 – 3 years or until audited; whichever is later
Paid checks
M1 - GENERAL ADMINISTRATIVE RECORDS
M3- FISCAL RECORDSM4 – ASSESSMENT & TAX
COLLECTION RECORDS
WWW.CTSTATELIBRARY.ORG
M1-110 DISPOSAL REQUESTS – RC075 PERMANENT
Retention ScheduleRequests………
Approved Requests
Software Company
ContractContactsProblems
STATE REPORTS
FORMS1. (M-1) Annual Report of
Municipal Property Tax Collectors – M4-470- Certification of millrate & tax levy; 3 years or until audited whichever is later.
2. (M-35b) Elderly & Totally Disabled Homeowners
3. (M-42b) Totally Disabled4. (M-59) Additional Veterans5. (M-36) Freeze
#’s 2-5 all use M4-510 Exemption of State Reimbursement –
3 years or until audited; whichever is later.
UNDELIVERABLE
(M4-610) 1 YEAR OR UNTIL AUDITED WHICHEVER IS LATER
Tax Bills
SEPARATE FOLDERS FOR EACH ACCOUNT
PLACED
Town Attorney Accounts
SEPARATE FOLDER FOR EACH
MARSHAL/CONSTABLE
PAID IN FULL
M4-430 - 1 YEAR FROM DATE COLLECTED OR
DATE ISSUED;IF UNCOLLECTED
WARRANTS
ADJUSTMENTS FOR FISCAL YEAR
REFUNDS FOR FYCOLLECTION AGENCY FOR FY
EXPENDITURES FOR FYBATCHES FOR FY
RETURNED CHECKS WARRANTS PAID IN FULL
PULL OUT ANYTHING ELSE THAT CAN BE SHREDDED
LABEL WITH FISCAL YEAR CLEARLY MARKED AND
DESTROY DATE ON THEM
End of the Fiscal Year
August, 2012 Auditors trying to complete the 2011 annual audit noticed an unusual account called “change line item” and began to ask questions of Finance Director and were not getting appropriate answers.November, 2012 Finance Director was put on “Administrative Leave” and finally dismissed in January, 2013January-August, 2013 Auditors were asked to look deeper and started to find discrepancies. Forensic audit began. (250,000 tax bills from Jan, 2008 – Nov, 2012 were pulled by office staff, making copies of every batch deposit ticket, batch settlement totals, and bank statements for every batch for both auditors and state investigators. Copies were reviewed to verify cash/checks listed on tax office deposit ticket were actually deposited at bank as batch sheets reported. (They were not.) Cash was removed from Tax Office deposits and replaced
with checks from other departments, from vendors, and town checks to make deposit whole. (Loss to Town – verified to be greater than$2 million)
Audit found that IRS W-2 forms for Finance Director had been altered from 1995. (Financial Loss to Town - $184,515)
Large amounts of cash found in his desk and office safe.January, 2013 Criminal investigation began by Major Crime Squad.June, 2013 Town Hall and Tax Office staff questioned by State Police investigator for his deposition prior to issuing arrest warrant.August, 2013 Finance Director arrested and taken to New Haven January, 2014 Finance Director pled guilty to five counts of larceny in the first degreeApril, 2014 Sentencing, expected to be 20 years, suspended after 11 years served and probation
Winchester Embezzlement Investigation Timeline:
KEEPING OFFICE ORGANIZED Daily batches should be balanced and
verified to insure that daily deposit to bank agrees with daily batch AND bank statement.
Copy of deposit ticket should be kept with daily batch attached with batch total report.
Daily batch total > Deposit slip prepared>Bank receipt - All should equal.
Policies and Procedures should be in place:
Cash & checks locked up every night. Large amounts of cash should not be kept in
cash drawers. No third party checks or personal checks
cashed out of cash drawers. If hand calculating interest, calculation tape
should be attached to tickets, per auditors.
Management responsibility Written policies and procedures –
control environment Protect assets Ensure integrity of financial
reports Control ledgers Reconciliation of cash Segregation of duties – separate
the ability to commit from the ability to conceal
Independent Checks Controlled Access Electronic processing controls
Internal Controls
As seen in past tax collector handbook
Segregation of Duties: Is the individual who
collects cash receipts someone other than the individual who prepares the deposits and records cash receipts
Are receipts deposited intact on a daily basis? Does the Tax Collector maintain a separate
bank account? Does the Tax Collector maintain a control book
on a current basis? Is the individual who maintains the control
book someone other than the individual who posts receipts and changes to the detail accounts in the rate book?
Are rate books periodically balanced to the control book?
Are all Assessor’s corrections numerically accounted for and properly posted to the rate books and control book on a timely basis?
Has the abstract been reconciled to the beginning balances in the rate books?
Auditing the Tax Collector’s Office
Do beginning balances for each prior
year’s list agree with the prior year’s report?
Does the beginning balance for the current year agree with the original rate book totals as reconciled to the abstract?
Do amounts in the report agree directly, or through adjustments, with the property tax revenue recorded in the General Fund?
Do the totals per the Suspense List agree to the totals shown on the Tax Collector’s Report?
Do the totals per the list of refunds agree to the totals shown on the Tax Collector’s Report?
Are there any other adjustments posted to the rate books?
Do collections reconcile to the amounts turned over to the Treasurer?
Do the ending outstanding balances per the report agree to the totals per the rate books?
Tax Collector’s Report: Does the Tax Collector prepare an annual report?
Are all liens properly continued and certificates filed with the Town Clerk on a timely basis?
Do prepaid taxes agree to amounts recorded in the control book?
Are control totals maintained for the Suspense Tax Book and do they agree to the totals of the detail?
Are back tax bills issued on a timely basis? Are lists of delinquent motor vehicle tax
payers filed with the Department of Motor Vehicles on a timely basis?
Are lien fees collected by the Tax Collector paid to the Treasurer?
Are collection enforcement mechanisms (tax sale, foreclosures, tax lien assignment) instituted on a timely basis?
Is interest consistently charged at the proper statutory rate on all overdue taxes?
Are accounts that are turned over to third parties for collection properly controlled?
Other items included in the Audit