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Audit Objective

Determine whether the Board established a fund balance and reserve policy and multiyear financial and capital plans to address the Town’s operational and capital needs.

Key Findings

• From January 1, 2015 through December 31, 2017, total fund balance increased in the general fund by $94,855 (49 percent). Year-end 2017 fund balance was nearly four times the 2018 general fund tax levy and 183 percent of 2018 budgeted appropriations.
• During the same period, total fund balance in the highway fund increased by $130,589 (58 percent). Year-end 2017 fund balance was 150 percent the 2018 highway fund tax levy and 96 percent of 2018 budgeted appropriations.
• Although the Town has projects that will require significant funding in the coming years, Town officials have not developed fund balance or reserve policies or multiyear financial or capital plans.

Key Recommendations

• Adopt budgets that include realistic estimates for revenues and expenditures.
• Develop and adopt a fund balance and reserve policy that establishes the level of fund balance and reserves to be maintained.
• Develop and adopt a comprehensive multiyear financial and capital plan.

Town officials agreed with our findings and indicated they plan to initiate corrective action.