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Audit Objective

Determine whether the Board and Town officials effectively managed and provided oversight of the Town’s financial operations.

Key Findings

• In 2017, total unrestricted fund balances in the general, water and sewer funds were $2.7 million, $1.7 million and $3.8 million. These amounts are excessive, representing 55 percent, 92 percent and 136 percent of 2018 appropriations for each respective fund.
• The Board has not adopted multiyear financial and capital plans or established adequate reserves.

Key Recommendations

• Establish written policies governing the amount of unexpended surplus funds that the Town should maintain.
• Adopt comprehensive multiyear financial and capital plans for a three- to five-year period, including a formal reserve plan.

Town officials agreed with our recommendations and indicated they planned to initiate corrective action.