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Audit Objective

Determine whether the Town of Yorkshire (Town) Board (Board) and officials adopted realistic budgets, maintained reasonable levels of fund balance and properly planned for equipment replacement.

Key Findings

The Board and officials did not develop and adopt realistic budgets, maintain reasonable levels of fund balance or properly plan for equipment replacement.

The Board:

• Consistently overestimated appropriations and underestimated revenues. As a result, unrestricted fund balance in the four major operating funds increased by $811,100 (67 percent) in the past four years to more than $2 million as of December 31, 2020.
• Did not establish and adopt the following comprehensive written plans or policies:
  • Multiyear Financial Plan,
  • Capital Plan,
  • Fund Balance Policy, or
  • Reserve policies.

Key Recommendations

• Adopt annual budgets that contain more reasonable estimates for appropriations and revenues.
• Develop and adopt a comprehensive, written, multiyear financial and capital plan and written fund balance and reserve policies.

Except as indicated in Appendix A, Town officials generally agreed with our findings and recommendations and indicated that they plan to take corrective action. Appendix B includes our comments on issues raised in the Town’s response.