Purpose of Audit

The purpose of our audit was to review the Town’s financial operations for the period January 1, 2012 through July 30, 2015.

Background

The Town of Horseheads is located in Chemung County and has a population of approximately 19,500. The Town is governed by an elected five-member Town Board and had budgeted appropriations for 2015 for the town-wide general, town-outside-village (TOV) general and TOV highway funds that totaled $5.5 million.

Key Findings

• The Supervisor and Board have not focused on developing budgets that mirror the actual results of Town operations.
• The Board has not developed multiyear financial plans to address the use of fund balance to finance operations, the continued reduction of sales tax revenues, establishing reserve funds or purchasing and financing future capital assets.

Key Recommendations

• Adopt structurally sound budgets that include realistic estimates of revenues, appropriations and fund balance.
• Develop comprehensive multiyear financial and capital plans to establish long-term objectives for funding long-term needs. Any long-term financial plan must be monitored and updated on a continuing basis.