Audit Objective 

Determine whether the Town of Cobleskill (Town) Town Board (Board) developed realistic budgets.

Key Findings 

The Board did not develop realistic budgets.

Budgeted appropriations were overestimated in the town-wide (TW) general and highway funds, and estimated revenues were underestimated in the town-outside-village (TOV) highway fund resulting in operating surpluses totaling $677,000: 

• Actual expenditures were less than appropriations by an average of $89,000 (15 percent) and $196,000 (26 percent) in the TW general and highway funds, respectively.
• Actual revenues exceeded estimated revenues by an average of $112,000 (90 percent) in the TOV highway fund.

As a result, much of the $424,000 of fund balance that the Board planned to use to fund projected deficits was not used and unrestricted fund balances increased to levels between 100 and 179 percent of the 2023 appropriations.

The Town’s preliminary budgets for the three fiscal years we examined did not include fund balance estimates with a breakdown by fund as required.

Key Recommendations 

• Adopt budgets that contain realistic estimates based on available current data and historical trends.
• Include fund balance estimates in the Town’s annual preliminary budgets.

Town officials agreed with our recommendations and indicated they will take corrective action.