Purpose of Audit

The purpose of our audit was to determine whether the Board and Village officials adopted reasonable budgets and adequately managed the Village’s financial condition for the period June 1, 2015 through September 30, 2016.

Background

The Village of Newport (Village) is located in the Town of Newport in Herkimer County. The Village, which is governed by a Board of Trustees, has a population of approximately 640. General fund budgeted appropriations for 2016 totaled approximately $379,000.

Key Findings

• From fiscal years 2013-14 through 2015-16, budgeted appropriations in the general fund exceeded actual expenditures by an annual average of $99,600 (36.8 percent).
• Unrestricted fund balance increased $148,357 (60 percent) over the past three years to $396,383, as of May 31, 2016.
• Village officials have not developed a comprehensive, written multiyear financial or capital plan.

Key Recommendations

• Adopt budgets that include realistic estimates for expenditures.
• Develop a policy to govern the levels of fund balance the Village should maintain.
• Develop and adopt a comprehensive multiyear financial and capital plan.