Purpose of Audit

The purpose of our audit was to review the Town’s financial condition for the period January 1, 2012, to July 31, 2013.

Background

The Town of Minetto is located in Oswego County, is approximately 6 square miles, and serves approximately 1,660 residents. The Town Board, which comprises five elected Board members, is the legislative body responsible for managing Town operations. The Town’s budgeted appropriations for the 2013 fiscal year are approximately $473,000 in the general fund, $434,000 in the highway fund, and $42,000 in the lighting district.

Key Findings

• The Board has adopted budgets that relied too heavily on appropriated fund balance as a financing source. As a result, the financial condition of the general, highway and lighting district funds has diminished in recent years, resulting in fiscal stress. As of December 31, 2012, the general and highway funds reported unexpended fund deficits of $24,853, and $31,823, respectively, and the lighting district fund had unexpended surplus funds of only $2,598.
• The Board does not receive monthly budget status reports or cash balances to monitor the Town’s financial condition.
• The Board did not develop a multiyear financial and capital plan to address the Town’s long-term priorities.

Key Recommendations

• Adopt a policy setting forth the reasonable amounts of unexpended surplus funds that the Town should maintain. Appropriate only available fund balance to finance operations in succeeding years’ budgets.
• Provide the Board with budget status reports and reconciled cash balances on a monthly basis.
• Develop a comprehensive multiyear financial and capital plan that projects operating and capital needs and financing sources over a three- to five-year period.