Purpose of Audit

The purpose of our audit was to review the financial operations of Ausable Water District 2, Ausable Water District 3 and Ausable Sewer District 1 for the period January 1, 2014 through July 31, 2015.

Background

The Town of Ausable is located in Clinton County and has a population of approximately 3,150. The Town is governed by an elected five-member Town Board. Budgeted appropriations for 2015 totaled approximately $2.1 million.

Key Findings

• Town officials could not monitor each district’s financial operation because the Board did not develop individual budgets for each of the districts.
• The Town did not enter into a written agreement with the Town of Chesterfield, which bills, collects and enforces charges for the three districts.
• The Town of Chesterfield did not assess penalties to delinquent accounts.

Key Recommendations

• Develop individual budgets for each of the water and sewer districts.
• Enter into a written intermunicipal agreement with the Town of Chesterfield.
• Ensure that penalties are correctly assessed on all delinquent accounts.