Purpose of Audit

The purpose of our audit was to assess the Town’s financial management practices for the period January 1, 2012 through February 13, 2014.

Background

The Town of Stockton is located in Chautauqua County and has a population of approximately 2,200. The Town is governed by an elected five-member Town Board. Budgeted appropriations for 2013 totaled approximately $1.3 million.

Key Findings

• The Board did not adopt a policy to address the level of unexpended surplus funds; as a result, the general and highway town-wide funds have accumulated an excessive amount of unexpended surplus funds.
• The Board has consistently overestimated appropriations in annual budgets.
• Town officials have not developed a written multiyear financial plan.

Key Recommendations

• Reduce the unexpended surplus fund balances in the general and highway town-wide funds and adopt a policy to address the maintenance of a reasonable level of surplus fund balance.
• Adopt budgets that included realistic estimates for appropriations.
• Develop a multiyear financial plan.