Purpose of Audit

The purpose of our audit was to evaluate the Town’s financial condition for the period January 1, 2011, through May 7, 2013.

Background

The Town of Genesee Falls is located in Wyoming County and serves approximately 440 residents. The elected Town Board is the legislative body responsible for managing Town operations, including establishing internal controls over financial operations and for maintaining sound financial condition. The Town’s general and highway funds’ budgeted appropriations for the 2013 fiscal year totaled approximately $165,824 and $312,972, respectively.

Key Findings

• The highway fund’s financial condition has diminished in recent years because of revenue shortfalls, and the Board allowed budgets to be over-expended. Specifically, the highway fund experienced unplanned operating deficits in 2011 and 2012 of $49,263 and $71,979, respectively. Consequently, the highway fund balance declined from $83,179 at January 1, 2011 to a deficit of $38,059 at December 31, 2012.
• The general fund currently had a positive fund balance of $33,550 as of December 31, 2012. However, because the general fund is directly impacted by borrowings from the highway fund, it is even more important that the Board properly oversees fiscal operations to ensure the Town’s financial stability.

Key Recommendations

• Monitor the budget during the course of the year, prevent appropriations from being over-expended, and adopt timely budget amendments to address revenue shortfalls or costs that are expected to exceed existing appropriations.
• Implement a plan to eliminate the unrestricted fund balance deficit.