Trust audit

The annual external audit raised a few issues for the Watertown Local Development Corp., a.k.a. Trust.

Some of them are just a function of the Trust having two employees. For example, the preparation of financial statements is done by Chief Executive Officer Donald W. Rutherford and Executive Assistant and Chief Financial Officer Kim S. Taylor.

The board of directors acted Thursday morning to take Ms. Taylor off the list of check signers.

“There is little segregation of duties,” said Lori Podvin, of Paulsen and Podvin, which did the audit. “She shouldn’t be a check-signer because she prepares the financial statements.”

Trust policy requires two signatures on checks. Mr. Rutherford and one of the four officers on the board can sign the checks now.

“What about credit cards?” asked board member James P. Fayle. “The purpose of dual checks is having oversight. We’re only looking at it after the fact.”

Mr. Rutherford said, “It’s reflecting in the expense side of the monthly statement. We try to stay within the budgeted expense side.”

Other members joined Mr. Fayle in asking if two signatures were necessary.

“I’m more comfortable with having two signers,” Mr. Rutherford said. “Usually it’s with 6, 7, 15 or 20 other checks that also need signatures.”

They also must add three items to the Web site, under the Public Authorities Accountability Act, including the internal control policy, internal control assessment from 2009 and procurement policy. Two were added under a motion by the board on Thursday. The governance committee will meet to work on a procurement policy.