Purpose of Audit

The purpose of our audit was to determine whether the Board adopted realistic and structurally balanced budgets and took action to maintain a reasonable amount of fund balance for the period January 1, 2015 through March 31, 2017.

Background

The Town of Moreau is located in Saratoga County, and the Village of South Glens Falls is within the Town’s borders. The Town, which is governed by an elected five-member Town Board, has a population of approximately 15,000. Budgeted appropriations for 2017 totaled approximately $7.6 million.

Key Findings

• The combined fund balance of the part-town general fund, part-town highway fund, sewer fund and water districts 2, 3, 4 and 5 increased by $1.4 million during the audit period due to inadequate budgetary estimates.
• The Board has not adopted a fund balance policy or a multiyear financial and capital plan.
• Fund balances are excessive for the part-town general fund, sewer fund and water districts 2, 3, 4 and 5.

Key Recommendations

• Develop budgets based on realistic estimates of revenues and appropriations.
• Develop a fund balance policy to govern the use of available fund balances.
• Create reserve funds and long-term financial plans to protect residents’ interests.