Audit Objective 

Determine whether the Town of LaGrange (Town) Board (Board) developed a multiyear financial plan and effectively managed the Town’s general fund balance. 

Key Findings 

The Board did not develop a multiyear financial plan or manage general fund balance in accordance with Town policy. As of December 31, 2022, the general unassigned fund balance was $3.3 million, or 51 percent of the ensuing year’s budgeted appropriations, which exceeded the Town’s fund balance policy limit by more than $725,000. 

As a result, it is difficult for the Board to assess alternative approaches to financial needs without a multiyear financial plan and more taxes may have been levied than necessary. 

Key Recommendations 

• Comply with the Town’s fund balance policy and develop a plan to reduce unassigned fund balance. 
• Develop, adopt and periodically update a comprehensive written multiyear financial plan.

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