Purpose of Audit
The purpose of our audit was to evaluate the Town’s budgeting practices for the period January 1, 2013 through June 30, 2016.
The Town of Arietta is located in Hamilton County and has a population of approximately 305. The Town is governed by an elected five-member Town Board. Budgeted expenditures totaled approximately $2.6 million in 2006.
- For fiscal years 2013 through 2015, the Board overestimated appropriations by more than $925,000 (33 percent) for the general fund and $820,000 (33 percent) for the highway fund.
- None of the appropriated fund balance was used and the general fund’s unrestricted fund balance increased for the period.
- The Board did not develop a multiyear financial plan, and the capital plan was not comprehensive because it only included future capital improvements for the Town-owned airport.
- Adopt budgets that include realistic estimates for appropriations.
- Discontinue the practice of adopting budgets that result in the appropriation of fund balance that is not needed to finance operations.
- Develop comprehensive financial and capital plans and regularly monitor and update the plans.