Purpose of Audit

The purpose of our audit was to evaluate the Town’s financial management for the period January 1, 2015 through August 3, 2016.

Background

The Town of Seward is located in Schoharie County. The Town, which has approximately 1,760 residents, is governed by a five-member Town Board. Budgeted appropriations for the 2016 fiscal year totaled approximately $802,000.

Key Finding

• The Board has not effectively managed fund balance. Town officials have adopted budgets that consistently overestimated expenditures and underestimated revenues.

Key Recommendation

• Expand the fund balance policy to cover reasonable amounts to maintain in each fund and how to manage annual operating surpluses.