Audit Objective

Determine whether the Town properly accounted for water and sewer operations.

Key Findings

• The Board did not adopt individual budgets and the Supervisor did not maintain separate accounting records for each special district.
• The Supervisor did not account for revenues and expenditures associated with improvement areas in the general fund as required by New York State Town Law.
• The Supervisor did not separately account for the revenues and expenditures from the intermunicipal agreements with neighboring towns, to ensure that revenues cover operating costs.

Key Recommendations

• Prepare budgets and maintain appropriate financial records for each special district.
• Properly account for Article 12-C improvement financial activity in the general fund.
• Properly account for intermunicipal agreement financial activity in a separate fund.

Town officials generally agreed with our recommendations and indicated they plan to initiate corrective action. Appendix B includes our comment on an issue raised in the Town’s response.