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Audit Objective

Determine whether the Board established adequate long-term plans which appropriately address the Town’s operational and capital needs and funding sources.

Key Findings

The Board did not develop:

• Comprehensive multiyear financial or capital plans.
• A reserve plan which details justifications for reserves to be established or maintained, funding levels and plans for use.

The Highway Superintendent did not:

• Submit an annual inventory list and estimates of highway and bridge related expenditures to the Board, as required.

Key Recommendations

• Develop and adopt comprehensive multiyear financial and capital plans for a three- to five-year period.
• Adopt a formal reserve plan that includes the accumulation and use of reserve funds, and analyze existing reserve fund levels against the plan.
• Annually provide the Board with the required highway inventory list and agreement for the expenditure of highway money, including the anticipated costs.

Town officials agreed with our recommendations and have initiated or indicated they planned to initiate corrective action.