Purpose of Audit

The purpose of our audit was to determine whether the Board effectively managed the Village’s financial condition for the period June 1, 2015 through November 30, 2016.

Background

The Village of Potsdam is located in the Town of Potsdam in St Lawrence County and has a population of approximately 9,400. The Village is governed by an elected five-member Board of Trustees. Budgeted appropriations for the 2016-17 fiscal year totaled approximately $9.8 million.

Key Findings

• The Village’s hydroelectric and sewer funds had deficit fund balances, and the general fund’s unrestricted fund balance was relatively low, at approximately 4.5 percent of appropriations, as of May 31, 2016.
• The Board has not adopted multiyear financial and capital plans.

Key Recommendations

• Continue to work to eliminate deficits in the operating funds and to increase fund balance to the levels established in the Board’s fund balance policy.
• Develop and adopt multiyear financial and capital plans.