Purpose of Audit

The purpose of our budget review was to determine whether the significant revenue and expenditure projections in the Village’s proposed budget for the 2013-14 fiscal year are reasonable.

Background

The Village of Hempstead, located in Nassau County, issued debt totaling $4.2 million to liquidate the accumulated deficit in the Village’s general and water funds as of May 31, 2005. Local Finance Law requires all local governments that have been authorized to issue obligations to fund operating deficits to submit their tentative budgets for the next fiscal year to the State Comptroller for review while the deficit obligations are outstanding.

Key Findings

• Based on the results of our review, we found that the significant revenue and expenditure projections in the proposed budget are reasonable.
• Village officials appropriately monitored the revenues and expenditures in the water fund to ensure the continued improvement of the water fund’s financial condition as was recommended in the budget review report issued in April 2012.
• The Village’s proposed budget complies with the property tax levy limit.

Key Recommendation

• There are no recommendations for this letter report.