[read complete report - pdf]

Audit Objective

Determine whether the Town Board (Board) effectively managed the Town of Wolcott’s (Town) financial condition.

Key Findings

The Board did not effectively manage the Town’s financial condition, did not have a clear understanding of the laws governing the finances of the general fund tax bases and did not have an understanding of the finances for the closed landfill. In addition, the Board:

• Did not treat taxpayers equitably when budgeting for and allocating certain revenues and expenditures in the town-wide (TW) and town-outside-village (TOV) general funds.
• Adopted unrealistic budgets and did not maintain reasonable levels of fund balance.
• Did not adopt a multiyear financial and capital plan or detailed reserve plan.

The Board’s ability to effectively manage the Town’s financial condition is further hampered by not requiring regular financial reporting.

Key Recommendations

• Ensure taxpayer equity by budgeting and recording revenue and expenditures in the appropriate funds.
• Adopt budgets with realistic estimates.
• Establish a written policy governing the reasonable amount of fund balance to maintain and adopt a multiyear financial and capital plan including a formal detailed plan for reserves.

Town officials agreed with our findings and indicated they have begun to inititate corrective action.