Audits of Local Governments and School Districts
Town of Sidney – Budget Review (B4-12-19)
Released: November 2, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our budget review was to determine whether the significant revenue and expenditure projections in the Town’s tentative budget for the 2013 fiscal year are reasonable.
Background
The Town of Sidney, located in Delaware County, issued debt totaling $2.5 million to liquidate a portion of the cumulative deficit incurred by the Town due to expenses related to the Town-owned hospital for the fiscal year ending December 31, 2005. Local Finance Law requires all local governments that have been authorized to issue obligations to fund operating deficits to submit their tentative budgets for the next fiscal year to the State Comptroller for review while the deficit obligations are outstanding.
Key Findings
- Based on the results of our review, we found that the significant revenue and expenditure projections in the preliminary budget are reasonable.
- The Town’s preliminary budget complies with the tax levy limit.
- The Town is currently reporting accounts payable from several years ago in the Hospital fund. While the Hospital fund is primarily responsible for the $1.9 million payable, the fund only has $500,000 in current resources available to liquidate the liability. The Town’s total current resources are approximately $2 million. Thus, the full liquidation of the liability could significantly impact the Town’s real property tax levy or the current level of services provided.
Key Recommendation
- Review the hospital fund accounts payable amount and determine an appropriate course of action.
Local Government and School Accountability Contact Information:
Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236