In line with a just lately launched annual audit by the State Auditor’s Workplace, the Village of Pecos didn’t have enough management over its funds throughout the 2022 fiscal 12 months. The village had six complete exposures, a few of which have been thought of materials weaknesses.
Maybe an important discovering within the report is that the Village didn’t have correct documentation for nearly any purchases made all year long. The audit discovered that in March 2021, the village stopped utilizing buy requisitions and buy orders to pay vendor invoices, and that continued via fiscal 12 months 2022.
The village additionally didn’t monitor bank card purchases, and it was unable to find out the opening stability for fiscal 12 months 2022 as a result of vendor invoices weren’t documented.
Auditors decided that the Village lacked certified employees to “carry out probably the most fundamental accounting features” for many of the fiscal 12 months.
In response to the discovering, village officers promised to problem all related buy orders and develop higher procedures to keep away from these kinds of issues sooner or later.
In one other discovering, auditors discovered the Village was months behind on financial institution reconciliations and there have been no checks and balances to verify they have been accomplished appropriately.
The audit notes that the village was capable of obtain this course of by October 2022, a number of months after the top of the fiscal 12 months.
A 3rd discovering revealed that the Village was at critical threat of fraud as a result of vendor invoices have been being paid with out a buy order. In line with the audit, the Village “has adopted a system the place the Village Clerk points vendor invoices to the Deputy Clerk and the Deputy Clerk pays these payments.”
Auditors mentioned the issue stemmed from not having staff perceive state legislation and finest practices, and that the system made it extra probably that fraudulent vendor invoices could be paid as a result of there was no documentation exhibiting what the invoice was for. to pay
Village administration responded that their staff would attend buying coaching and buy orders could be required sooner or later.
The final main problem recognized was that the Village stopped funds to the New Mexico Retiree Well being Care Authority in January 2021 and continued via fiscal 12 months 2022.
State laws defines: “A taking part employer that fails to make, by the tenth day following the final day of the month, all employer and worker contributions required by the Retiree Well being Care Act to be remitted by the employer for the month shall pay to the fund, along with curiosity on the quantities unpaid, are compounded month-to-month on the fee of six p.c every year.”
This might lead to what was as soon as fairly a value to the Village, and finally led to Pecos being briefly suspended from the RHCA in 2022.
The auditor advised the village “construct a tradition and perspective concerning the significance of sustaining management and set expectations for requirements of habits throughout the village.”
Pecos officers agreed with every of the auditor’s findings and mentioned they’d adjust to the assorted suggestions.