Purpose of Audit

The purpose of our audit was to determine whether the Board effectively managed the Village’s fund balance for the period June 1, 2016 through November 10, 2017.

Background

The Village of Franklin is located in the Town of Franklin in Delaware County and has a population of approximately 375. The Village is governed by an elected three-member Board of Trustees. General fund budgeted appropriations for the 2017-18 fiscal year totaled approximately $150,000.

Key Findings

• The general fund’s year-end total fund balance increased by 46 percent from 2014-15 through 2016-17.
• Budgeted general fund appropriations in 2015-16 and 2016-17 exceeded expenditures by an annual average of 30 percent while actual revenues exceeded budgeted revenues in 2014-15 and 2015-16 by an annual average of 18 percent.
• Village officials have not developed multiyear financial or capital plans or a fund balance policy.
• The Clerk-Treasurer did not provide the Board with adequate financial reports.

Key Recommendations

• Develop and adopt a fund balance policy that establishes the level of fund balance to be maintained.
• Adopt budgets that include realistic estimates for revenues and expenditures.
• Develop and adopt a comprehensive multiyear financial and capital plan.
• Ensure that the Clerk-Treasurer provides adequate financial reports to the Board.