[read complete report - pdf]

Audit Objective

Determine whether the Town Board (Board) effectively managed fund balances.

Key Findings

The Board did not effectively manage fund balance and spent down fund balance by $427,000 or 71 percent. The Board:

• Appropriated fund balance the Town did not have, which resulted in deficit, or negative fund balances, in the general fund.
• Did not develop and adopt a comprehensive written:
  • Fund Balance Policy
  • Multiyear Financial Plan or
  • Capital Plans.

As a result, the Board’s ability to know what effect financial decisions would have on future fund balance levels was diminished.

Key Recommendations

• Develop and adopt budgets which align recurring revenues with recurring expenditures, and include realistic estimates of appropriated fund balance amounts.
• Develop and adopt a comprehensive written fund balance policy and written multiyear financial and capital plans.

Town officials generally agreed with our recommendations and have initiated or indicated they planned to initiate corrective action. Appendix B includes our comment on an issue that was raised in the Town’s response letter.