Purpose of Audit

The purpose of our audit was to determine whether the Board adequately managed the town-wide fund balance levels for the period January 1, 2016 through September 17, 2017.

Background

The Town of Nichols is located in Tioga County. The Town is governed by an elected five-member Town Board. Budgeted appropriations for 2017 totaled approximately $1 million.

Key Findings

• Actual revenues exceeded budgeted amounts by an annual average of $418,000 and budgeted appropriations exceeded expenditures by an annual average of $203,000.
• Town-wide (TW) fund balance increased by $1 million between 2014 and 2016.
• Town officials have not developed multiyear financial or capital plans or a fund balance policy.

Key Recommendations

• Adopt budgets that include realistic estimates for revenues and expenditures.
• Reduce the amounts of town-wide fund balance and use the excess funds as a financing source for either one time expenditures or to improve the town’s infrastructure.
• Develop and adopt a fund balance policy and comprehensive multiyear financial and capital plans.