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Audit Objective

Determine whether the Board established a fund balance and reserve policy and long-term plans to address the Town’s operational and capital needs in the general and highway funds.

Key Findings

• From December 31, 2014 through December 31, 2017, unrestricted fund balance in the general fund increased by $106,230 (110 percent). During the same time period, general fund expenditures were $108,691 (17 percent) below budgeted appropriations.
• During the same period, unrestricted fund balance in the highway fund increased by $50,007 (24 percent).
• Although Town officials have concerns about upcoming financial or capital needs that will require significant funding, they have not developed fund balance or reserve policies or multiyear financial or capital plans.

Key Recommendations

• Develop and adopt a fund balance and reserve policy that establishes the level of fund balance and reserves to be maintained.
• Develop and adopt a comprehensive multiyear financial and capital plan.

Town officials generally agreed with our recommendations and indicated they planned to initiate corrective action.