Town of Esperance – Fund Balance (2016M-405)

Issued Date
November 21, 2017

Purpose of Audit

The purpose of our audit was to evaluate the Town’s financial management for the period January 1, 2015 through September 26, 2016.

Background

The Town of Esperance, which includes the Village of Esperance within its boundaries, is located in Schoharie County and has a population of approximately 2,000. The Town is governed by an elected five-member Town Board. Budgeted appropriations for 2016 totaled approximately $567,000.

Key Findings

  • Town-outside-village fund balances increased by 9 percent over the last three fiscal years, resulting in an accumulation of $154,849, or 137 percent of the subsequent year's budget.
  • Town officials have not developed a fund balance policy.

Key Recommendations

  • Develop a plan to reduce the amount of available fund balance in a manner that benefits Town residents.
  • Adopt a written fund balance policy that establishes reasonable levels of fund balance in order to meet the Town's needs.