Purpose of Audit

The purpose of our audit was to determine whether the Board ensured that fund balance was reasonable for the period January 1, 2016 through December 31, 2017.

Background

The Town of Sharon is located in Schoharie County and has a population of approximately 1,800. The Town is governed by an elected five-member Town Board. Operating funds’ budgeted appropriations for 2018 total approximately $916,500.

Key Findings

• Town-wide (TW) and town-outside-village (TOV) fund balances grew by 28 and 79 percent, respectively, from 2014 through 2017.
• Budgeted TW and TOV appropriations exceeded expenditures by an annual average of 19 percent and 31 percent, respectively, from 2014 through 2017.
• Town officials have not developed multiyear financial or capital plans or a fund balance policy.

Key Recommendations

• Reduce TW and TOV fund balance by using excess fund balance in a manner that benefits Town residents.
• Adopt budgets that include realistic estimates for expenditures.
• Develop and adopt comprehensive multiyear financial and capital plans and a fund balance policy that establishes the level of fund balance to be maintained.