Purpose of Audit

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

Background

The Town of Russia is located in Herkimer County and has a population of approximately 2,600. The Town is governed by an elected five-member Town Board which is responsible for the general management and control of the Town’s financial and operational affairs. Expenditures for the general and highway funds in 2013 totaled approximately $1.07 million.

Key Findings

• The Board has not adopted policies and procedures to govern the level of funds to be maintained, and the Town has accumulated excessive funds as a result.
• The Board has typically underestimated revenues and overestimated appropriations.
• The Board has not developed comprehensive multiyear or capital plans.

Key Recommendations

• Develop a fund balance policy that establishes a reasonable amount of fund balance to meet the Town’s needs and formulate a plan for the use of excess funds in a manner that benefits taxpayers.
• Adopt budgets that include realistic estimates for revenues and appropriations.
• Adopt, monitor and periodically update comprehensive multiyear and capital plans.