Purpose of Audit

The purpose of our audit was to assess the City officials’ financial management for the period January 1, 2012 through March 31, 2015.

Background

The City of Geneva is located in Ontario County and has a population of approximately 13,200. The Common Council is the legislative and governing body. Budgeted appropriations for 2015 total approximately $24.2 million.

Key Findings

• The City Manager did not use historical trends or prior year amounts when producing budgets for 2012-14, and the Council, therefore, adopted unrealistic budgets.
• Fund balance was appropriated to finance operations, and overall fund balance levels, therefore, decreased significantly.
• Officials did not use the Uniform System of Accounts to maintain the accounting records.

Key Recommendations

• Adopt structurally balanced budgets that include realistic estimates of revenues and expenditures based on historical trends and future projections.
• Continue to reduce reliance on fund balance as a financing source.
• Use the Uniform System of Accounts to maintain the accounting records.