Purpose of Audit

The purpose of our audit was to evaluate the Town’s financial condition and budgeting practices for the period January 1, 2010, through December 31, 2012.

Background

The Town of Wappinger is located in Dutchess County and has a population of approximately 26,275. An elected five-member Town Board is the legislative body responsible for overseeing the Town’s operations and finances. The 2012 Town operating budget was approximately $17 million.

Key Finding

• The Board and Town officials did not properly manage the financial condition of the town-wide general fund. The Board did not adopt structurally balanced budgets; instead, budgeted expenditures were consistently under-budgeted and reliance was placed on non-recurring revenues such as fund balance appropriations and inter-fund loans to fund recurring operating expenditures. Consequently, the Town’s financial position has declined over several years, but has shown some improvement in 2012.

Key Recommendations

• Develop realistic revenue and expenditure estimates for the annual budgets.
• Maintain a detailed record of inter-fund loans.
• Carefully monitor actual budget results to identify potential fiscal difficulties, such as structural imbalances between revenues and expenditures.