Purpose of Audit

The purpose of our audit was to examine the Town’s financial operations for the period January 1, 2015 through June 24, 2016.

Background

The Town of Butternuts is located in Otsego County and had a population as of the 2010 Census of 1,786 residents. The Town is governed by an elected five-member Town Board which is composed of the Town Supervisor and four Board members. Budgeted appropriations for 2016 for the town-wide and town-outside-village funds totaled approximately $1.3 million.

Key Findings

• The Board improperly allocated approximately $181,500 of sales tax distributions and $150,400 of State transportation aid across differing and incorrect tax bases, resulting in taxpayer inequity.
• Town officials maintained inaccurate accounting records resulting in misstatements in several funds.

Key Recommendations

• Adopt budgets which include the equitable and proper allocation of sales tax revenues and correct the payment of prior years’ inequitable and improper allocations.
• Properly record the separate cash balances of different funds that are commingled in one bank account.