Purpose of Audit

The purpose of our audit was to examine the Town’s budgeting and financial oversight practices for the period January 1, 2013 through March 24, 2015.

Background

The Town of Leicester is located in Livingston County and has an approximate population of 2,200. The Town is governed by an elected five-member Town Board. Budgeted appropriations for 2015 total approximately $1.2 million.

Key Findings

• The Board has not adopted budget policies and procedures or a long-term financial plan to govern the budgeting process or the appropriate level of fund balance to maintain in each fund.
• The Board adopted unrealistic budgets that relied heavily on the appropriation of fund balance as a financing source.
• The Board has not adopted investment and procurement policies.
• The Board did not perform annual audits of the books and records of all Town officials and employees who received or disbursed money during the year.

Key Recommendations

• Develop policies and procedures and a long-term financial plan to govern the budgeting process and establish reasonable levels of fund balance to be maintained in each fund.
• Adopt budgets with realistic estimates of revenues, expenditures and the amount of fund balance that will be available and used to fund the next year’s budget.
• Adopt investment and procurement policies.
• Annually audit, or cause the audit of, the books and records of the Supervisor and all other officers and employees who received or disbursed money in the previous year.