Purpose of Audit

The purpose of our audit was to assess the town’s financial condition for the period January 1, 2012 through December 31, 2014.

Background

The Town of Owego is located in Tioga County and has a population of approximately 20,000. The Town is governed by an elected five-member Town Board. Budgeted appropriations for the major operating funds for 2015 total approximately $11.8 million.

Key Findings

• The Board did not develop reasonable revenue estimates for the general funds’ budgets because they were not based on a historical trend of actual results.
• The Town accumulated almost $2.7 million in the town-wide general fund and more than $1.5 million in the town-outside-village general fund.

Key Recommendations

• Develop reasonable revenue estimates that are based on a historical trend of actual results.
• Formally develop a plan to use the significant accumulated fund balances to finance capital or other one-time expenditures, including estimated funding and use of reserves.