Purpose of Audit

The purpose of our audit was to review the Town’s financial condition for the period January 1, 2014 through May 31, 2015.

Background

The Town of German Flatts is located in Herkimer County and has a population of approximately 13,000. The Town is governed by a five-member Town Board. Budgeted appropriations for 2015 are approximately $2.3 million.

Key Findings

• The Board did not adopt realistic and structurally balanced budgets.
• The Board did not adopt a policy to determine the amount of fund balance to be maintained.
• The town-wide general fund relied on revenue anticipation notes (RAN) to fund operations.
• The Board has not developed a comprehensive multiyear financial and capital plan.

Key Recommendations

• Ensure that budgeted appropriations and estimates of revenues for individual accounts are realistic.
• Adopt a policy setting forth the reasonable amounts of fund balance the Town should maintain in each fund.
• Decrease reliance on annual RAN borrowings to finance Town operations.
• Develop a comprehensive multiyear financial and capital plan.