Purpose of Audit

The purpose of our audit was to evaluate the Town’s financial management for the period January 1 through December 31, 2013.

Background

The Town of Schuyler is located in Herkimer County and has a population of approximately 3,400. The Town’s budgeted appropriations for the 2014 fiscal year were approximately $1.6 Million. The Town is governed by an elected Town Board, which comprises a Supervisor and four Board members.

Key Findings

• The Board has not adopted policies and procedures to govern the level of fund balance to be maintained. As a result, the Town has accumulated excessive fund balance in the general fund and sewer district fund.
• At current spending levels, the unrestricted, unappropriated fund balance in the Town’s general fund would cover more than a full year’s appropriations. The sewer district fund has enough unrestricted, unappropriated fund balance to cover more than seven years’ appropriations.
• The Board did not develop a comprehensive, multiyear financial operating or capital plan.

Key Recommendations

• Develop a fund balance policy that establishes a reasonable amount of fund balance that should be maintained in each fund in order to meet the Town’s needs.
• Adopt budgets that include realistic estimates for revenues, expenditures and appropriated fund balance.
• Develop and adopt a comprehensive multiyear financial and capital plan to establish the goals and objectives for funding long-term operating and capital needs. These plans should be monitored and updated on an ongoing basis.