Purpose of Audit

The purpose of our audit was to assess the financial management of the Village’s water fund for the period June 1, 2011, to March 13, 2013.

Background

The Village of Fleischmanns is located in the Town of Middletown in Delaware County. The Village is governed by a five-member Board of Trustees, which is composed of a Village Mayor and four Trustees. The Village’s annual budget for the 2012-13 fiscal year was $953,000, which is funded mainly through real property taxes, water and sewer user fees, and State and Federal aid. The water fund budget for the same period was $136,165.

Key Findings

The Board did not adequately manage the water fund’s financial operations.

• The Board consistently over-estimated expenditures and revenues, which initially resulted in an excessive fund balance, but has since caused fund balance to significantly decrease over the past two years.
• Although capital expenditures were made to repair infrastructure and decrease water loss, no long-term capital plan has been put into place to address financial needs and further capital improvements.

Key Recommendations

• Adopt balanced budgets with realistic estimates for anticipated needs and that are based on historical spending.
• Establish a long-term capital plan for the water fund to address current and future infrastructure needs, including setting aside money in reserves as needed.