Purpose of Audit

The purpose of our audit was to review the Village’s financial condition and budgeting practices for the period June 1, 2010 through May 31, 2013.

Background

The Village of South Glens Falls is located in Saratoga County, has a population of approximately 3,500 and is governed by an elected five-member Board of Trustees. Budgeted appropriations for the 2013-14 fiscal year total approximately $4.2 million, funded primarily with real property taxes, sales tax, and water and sewer rents.

Key Findings

• The Board has not adopted structurally balanced budgets with reasonable estimates for revenues and appropriations for the general, sewer and water funds.
• The Board planned for general fund operating deficits which, if realized, would have resulted in unrestricted fund balance deficits.

Key Recommendations

• Develop and adopt annual budgets that include reasonable estimates for revenues, expenditures and the amount of fund balance appropriated to finance operations.
• Accurately project the amount of available fund balance prior to appropriating it as a financing source for the subsequent year’s operations