[read complete report - pdf]

Audit Objective

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

Key Findings

The Board did not effectively manage the Town’s financial condition and was unaware of the Town’s true financial position when it adopted budgets because it did not receive accurate financial information from the Town Supervisor (Supervisor).

We found the Board:

• Failed to implement our prior 2013 audit recommendation to appropriate fund balance only in amounts that are actually available, after retaining a reasonable amount for the next year.
• Appropriated more fund balance to finance operations than was available, resulting in the general and highway funds and water district beginning 2020 with budgetary deficits.
• Did not adopt realistic budgets for each fund from 2017 through 2020.
• Did not adopt a multiyear financial plan, capital plan or fund balance, reserve or budgeting policies.

Key Recommendations

• Adopt budgets based on accurate current data and historical trends.
• Establish fund balance, reserve and budgeting policies and develop multiyear financial and capital plans.
• Provide adequate oversight of the bookkeeper and provide municipal accounting training.

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