Purpose of Audit

The purpose of our audit was to review the Town’s financial management, budget practices and resultant financial condition for the period January 1, 2011 through September 18, 2014.

Background

The Town of Huron is located in Wayne County and has a population of approximately 2,000. The Town is governed by an elected five-member Town Board. Budgeted appropriations for 2014 total approximately $2.16 million.

Key Findings

• The Board and Town officials have not developed multiyear financial plans.
• The Board and Town officials have not developed policies or procedures to establish financial goals and govern budgeting practices and the level of unrestricted unappropriated fund balance to maintain.
• The Board routinely adopted budgets with unrealistic estimates, which resulted in the accumulation of surplus funds and higher tax levies than necessary.

Key Recommendations

• Develop a multiyear financial plan to establish the goals and objectives for funding long-term operating and capital needs. This plan should be monitored and updated on an on-going basis.
• Adopt policies and procedures to govern budgeting practices and the reasonable level of surplus fund balance to be maintained in each fund to meet the Town’s needs.
• Adopt budgets that include realistic estimates for revenues, expenditures and appropriated fund balance.