Purpose of Audit

The purpose of our audit was to evaluate the Town’s financial management for the period January 1, 2015 through August 25, 2016.

Background

The Town of Kortright is located in Delaware County and has a population of approximately 2,000. The Town is governed by an elected five-member Town Board. The general and highway funds’ budgeted appropriations for 2017 total approximately $1.2 million.

Key Findings

• The Town has accumulated fund balance totaling $358,706 in the general fund and $515,112 in the highway fund without clear plans for the use of these accumulated funds.
• The Board has not adopted long-term financial and infrastructure plans that set forth the Town’s objectives and goals for the use of these accumulated funds.

Key Recommendations

• Develop a fund balance and reserve policy that establishes reasonable levels of fund balance to be maintained in each fund, the reserves and target amounts that are needed, funding sources and when the reserves will be used to meet the Town's needs.
• Adopt comprehensive multiyear financial and capital plans to address the Town's needs.