Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Financial Controls topic
No spam. Unsubscribe anytime.
Council raises concerns about financial controls, electronic transfers and receipt backup
Summary
Councilmembers and staff discussed internal controls after several payments were questioned in the meeting; members asked staff to clarify purchase‑order/backup requirements and to consider tighter procedures before payments are released.
Councilmembers discussed financial controls, the town’s use of electronic funds transfers (EFT) and situations in which checks were prepared with limited backup.
One councilmember described signing a check where the backup consisted of handwritten notes and said the transaction would not normally have been approved without receipts or a purchase order. Councilmembers discussed a broader concern that many vendors receive EFT payments and that credit‑card statements and supporting receipts are not always visible to the council prior to payment. A councilmember asked whether there is a defined and enforced list of what constitutes acceptable backup (POs, receipts, invoices) before payments are processed.
Staff replied that the town has procedures requiring backup and approvals but agreed to provide clearer guidance and to bring the procedure to committee or council for review. The council asked the finance or audit committee to examine electronic fund‑transfer controls and the practice of signing checks with limited documentation, and to recommend any policy changes to ensure consistent, verifiable supporting documentation before payment.
No formal sanction or policy change was adopted at the meeting; councilmembers requested staff and committees review procedures and return recommendations.
