Purpose of Audit

The purpose of our audit was to examine Town officials’ budget practices for the four major operating funds, which include the general and highway town-wide funds and the general and highway town-outside-village funds, for the period January 1, 2015 through October 11, 2016.

Background

The Town of Greene is located in Chenango County and has a population of approximately 5,600. The Town is governed by an elected five-member Town Board. Budgeted appropriations for 2017 total approximately $2.3 million.

Key Findings

• The Board did not develop realistic budgets for its four major operating funds, which resulted in operating surpluses.
• Town officials have not developed a policy for acceptable levels of fund balance to maintain.
• Town officials have not developed long-term financial and capital plans.

Key Recommendations

• Develop and adopt budgets that include realistic estimates for revenues and expenditures.
• Develop a fund balance policy that establishes the levels of fund balance, including reserves, to be maintained in each fund to meet the Town’s needs.
• Develop comprehensive multiyear financial and capital plans.