CANTON – The Village of Canton’s financial records are not up to snuff, according to state auditors.

The state Office of the Comptroller’s audit report, released today, also says that the village Board of Trustees has not responded in writing to the report, as is required

“The Board needs to improve its oversight of the Village’s financial activities,” the report said.

The report criticized the village’s clerk-treasurer for not maintaining accurate computerized accounting records and reports, which impaired the board’s ability to monitor financial operations, the auditors said.

Although the mayor reviewed all bank statements and cancelled checks, the board did not ensure that timely bank reconciliations were properly performed. As of May 31, 2011, the village’s two main bank accounts had not been reconciled for more than two years, according to auditors.

Also, the auditors said, the board did not have procedures in place to ensure that the annual financial reports are completed and filed in a timely manner.

The latest annual reports filed are for May 2008 and 2009, both filed in 2011. The 2010 and 2011 reports remain unfiled.

The auditors also said the village board “did not audit, or contract with an independent auditor to audit, the records maintained by the Clerk-Treasurer during the period audited.”

The auditors also found what they believe to be an excess balance in the general fund and a deficit in the sewer fund.

“The results of our audit and recommendations have been discussed with Village officials and their comments have been considered in preparing this report. Village officials were also given 30 days to respond in writing to our findings and recommendations. We did not receive a written response within this time frame,” the report said.

The auditors made these recommendations:

“1. The Clerk-Treasurer should maintain accurate and timely accounting records and reports.

2. The Board should ensure that bank reconciliations are performed timely and that all discrepancies are investigated and corrected immediately.

3. The Board should ensure that the Clerk-Treasurer files the Village’s annual financial reports within the prescribed statutory period.

4. The Board should perform annual audits of the Clerk-Treasurer’s records and reports, or have an officer, employee or an independent public accountant do so.

5. Village officials should prepare an accurate estimate of the unreserved fund balance at the end of the fiscal year for the Board’s consideration in developing the ensuing year’s budget.

6. The Board should use the surplus fund balance in the general fund in a manner that benefits Village taxpayers. Such uses could include, but are not limited to:

• Increasing or establishing necessary reserves

• Paying off debt

• Financing one-time expenses

• Reducing property taxes.

7. The Board should review sewer rates and revise them, if necessary, to generate sufficient revenue to cover all appropriations and to eliminate the deficit.”

The report is online at http://www.osc.state.ny.us/localgov/audits/villages/2012/canton.pdf