Purpose of Audit

The purpose of our audit was to review the Village’s financial condition and budgeting practices for the period June 1, 2011 through October 31, 2014.

Background

The Village of Round Lake is located in the Town of Malta, Saratoga County, and has a population of approximately 620. The Village is governed by an elected five-member Board of Trustees. Budgeted appropriations for the 2014-15 fiscal year totaled approximately $1.8 million.

Key Findings

• The Board consistently adopted budgets that appropriated fund balance from the water and sewer funds.
• Consistent appropriation of fund balance and significant unplanned repair costs resulted in a decline in water fund balance from $164,063 at the start of the 2011-12 fiscal year to a deficit of $3,624 at the end of the 2014-14 fiscal year.
• The Board did not develop a multiyear financial plan to address the water fund’s deficit fund balance or the sewer fund’s declining fund balance.

Key Recommendations

• Develop and adopt structurally balanced budgets for the water and sewer funds.
• Develop a plan to eliminate the fund balance deficit in the water fund and to alleviate the fiscal stress of the water and sewer funds.
• Develop a multiyear plan that includes provisions to address the fiscal stress in the water and sewer funds.