Audit Objective
Determine whether Town of Ashland (Town) officials established multiyear capital and financial plans.
Key Findings
Town officials did not establish multiyear capital and financial plans, which provide a framework to assess the Town’s capital and financial needs and identify appropriate funding and financing approaches to address them. Officials also have not developed a fund balance or a reserve fund policy to determine needed amounts for fund balance and specific reserves and to establish plans for periodically reviewing these funds.
As a result, officials have not determined the Town’s long-term capital needs or considered the impact they will have on Town operations or how they will fund these needs. As of July 17, 2024, the Town’s capital reserve funds have zero balances. However, based on discussions with the Highway Superintendent (Superintendent), vehicle and equipment capital improvements over the next five years might cost up to $822,000. For example, a 2005 pickup truck, 2007 backhoe and 2011 mower are beyond their usable life by an average of almost six years, and he shared that both the Town’s salt shed and highway garage need costly repairs.
Key Recommendations
- Develop written multiyear capital and financial plans.
- Consider funding reserves for current and upcoming capital needs.
Town officials generally agreed with our findings and indicated they plan to initiate corrective action.