WINDHAM — A proposed change to town policy would prohibit employees from using municipal credit cards for personal purchases.
The proposal came in response to three recommendations the town auditor made to the selectmen Monday night.
Certified public accountant Vachon, Clukay & Co. said the firm’s suggestions were not based on any wrongdoing, but are intended to keep Windham in line with standard internal controls for financial reporting.
Once or twice a year, an employee using a town credit card for Wal-Mart or Staples would include a personal purchase with the town purchase, Finance Director Dana Call said. That person would then reimburse the town for the personal item, she added.
But in its review, the auditing company discovered an instance where no receipt was included for the personal purchase. Call said the employee, who she refused to identify, reimbursed the town for the purchase but had not included a receipt.
The company had two other recommendations.
One is that the town administrator review and approve accounting entries made by the town finance director. These entries include revenue Windham has collected for town services.
It is standard procedure to have someone reviewing the entries other than the person posting them, the auditor said.
Call said she will have Town Administrator Dave Sullivan check the entries.
Vachon, Clukay & Co. also recommended that the selectmen consider a centralized deposit process.
For years, Windham has had a decentralized cash receipt and depositing system. In this way of doing business, individual departments collect revenues and deposit them into the town’s accounts.
The town treasurer had, informally, delegated the deposit function to individuals. In response to the audit report, Call said the decentralized deposits have been subject to review.
The town treasurer has reconciled them with bank accounts, and department heads have reported revenues to the finance director on a monthly basis. In addition, the selectmen are provided a quarterly budget report of revenues.
Selectman Bruce Breton said he wants further discussion of the audit report.
Breton, the vice chairman, will ask that the board sit down with the finance director and town administrator and review the audit thoroughly to make sure all internal controls are in place and adhered to in the future.
“I definitely believe in checks and balances,” he said.