Purpose of Audit

The purpose of our audit was to examine the Board’s oversight and management of financial operations and ambulance services for the period January 1, 2013 through June 12, 2014.

Background

The Town of Galen is located in Wayne County and has a population of approximately 4,300. The Town, which contains the Village of Clyde within its borders, is governed by an elected five-member Town Board. Budgeted appropriations for 2014 totaled approximately $1.5 million.

Key Findings

• The Town did not properly account for reserves within the operating funds that financed them and does not budget to fund reserves, and several reserves have not been properly established.
• The Board has not established a budgeting policy, and it consistently underestimated revenues and overestimated expenditures within the town-outside-village funds.
• The Board did not create a comprehensive, multiyear financial plan or capital plan.
• The Board did not audit the books and records of the Supervisor.
• The Board does not adequately oversee and monitor the operations and finances relating to the provision of Town ambulance services.

Key Recommendations

• Develop and implement a plan for establishing and using reserve funds.
• Establish written policies and procedures governing the budgeting process and adopt budgets with realistic estimates for town-outside-village revenues and expenditures.
• Develop a comprehensive, multiyear financial plan and capital plan.
• Annually audit the records and reports of the Supervisor or engage the services of an independent public accountant or auditor to do so.
• In consultation with the Town’s attorney as appropriate, oversee and manage the ambulance service as a Town department in accordance with law.