Purpose of Audit
The purpose of our audit was to examine the Village’s financial condition for the period June 1, 2011, to March 1, 2013.
Background
The Village of Delhi is located in the Town of Delhi in Delaware County. The Village is governed by an elected Board of Trustees consisting of a Mayor and four Trustees. The Village’s total general, sewer and water fund budgeted expenditures for the 2012-13 fiscal year are $3.4 million.
Key Findings
- The Mayor and Board did not properly manage the Village’s financial condition because they did not consistently develop sound budget estimates. Further, they did not adequately monitor actual results against the budget. As a result, the unexpended surplus fund balances remained high while the Village’s real property tax levy continued to increase slightly by 7 percent from 2007 to 2012.
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As of May 31, 2012, the general, water and sewer funds have accumulated significant unexpended surplus funds and have not established formal reserves for future repairs and capital needs.
Key Recommendations
- Consider historical trends, as well as identified current and future needs, when developing budget estimates that are consistent with the Village’s actual revenues and expenditures. Set aside the financing for those future needs in formal reserves.
- Develop a plan to reduce the amount of unexpended surplus funds in a manner that benefits Village taxpayers.