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Audit Objective

Determine whether the Board effectively managed the Town’s financial condition.

Key Findings

• From January 1, 2013 through December 31, 2017, the general fund’s year-end fund balance increased from $292,780 to $917,351, or 213 percent.
• In June 2018, the Board adopted a fund balance policy that allowed for unexpended surplus funds of up to 70 percent of annual expenditures. The policy did not define the time periods or means for which fund balance will be used and replenished.
• The Board has not formalized or adopted comprehensive multiyear financial and capital plans specifying the Town’s objectives and goals for use of accumulated funds.

Key Recommendations

• Consider reducing unrestricted fund balance and using the excess funds as a financing source in a manner that benefits taxpayers.
• Revise the fund balance policy to ensure reasonable levels of fund balance and define timing and means of replenishment.
• Formalize and adopt comprehensive multiyear financial and capital plans.

District officials generally agreed with our findings and indicated they plan to initiate corrective action.