[read complete report - pdf]

Audit Objective

Determine whether the Board has properly managed fund balance.

Key Findings

• The Board did not properly manage fund balance as the town-wide (TW) general fund and TW highway fund had deficit unrestricted fund balances during our audit period.
• The Board did not develop and adopt comprehensive written multiyear financial and capital plans and written fund balance and reserve fund policies to help guide the budget development process.
• Outstanding interfund cash advances from 2016 have not been repaid as required.

Key Recommendations

• Evaluate the financial activity in the TW general fund and TW highway fund and establish a plan to eliminate deficit fund balances and ensure that those funds are self-sustaining.
• Develop and adopt comprehensive written multiyear financial and capital plans and written fund balance and reserve fund policies.
• Repay the interfund cash advances as required.

Town officials generally agreed with our recommendations and indicated they planned to initiate correction action. Appendix B includes our comment on an issue raised in the Town’s response.