Purpose of Audit

The purpose of our audit was to review the Board’s financial management for the period January 1, 2010 through September 26, 2014.

Background

The Town of Tyrone is located in Schuyler County and has a population of approximately 1,600. The Town is governed by an elected five-member Town Board. Budgeted appropriations for 2014 totaled approximately $1.2 million

Key Findings

• The Town should avoid relying on surplus fund balance as a revenue source to finance recurring expenditures, which ultimately depletes fund balance below a reasonable level.
• The Town has not developed policies, procedures or multiyear financial plans to govern budgeting practices.
• The Board does not perform an annual audit of the records of any department that collects money.

Key Recommendations

• Develop fiscal policies that include determining the level of fund balance that must be maintained for sufficient cash flow and other purposes.
• Develop structurally balanced budgets and a formal, comprehensive multiyear plan for restoring fund balance.
• Perform an annual audit or hire an independent auditor to do so.