Town of Greene – Budget Practices (2016M-409)

Issued Date
November 21, 2017

Purpose of Audit

The purpose of our audit was to examine Town officials’ budget practices for the four major operating funds, which include the general and highway town-wide funds and the general and highway town-outside-village funds, for the period January 1, 2015 through October 11, 2016.


The Town of Greene is located in Chenango County and has a population of approximately 5,600. The Town is governed by an elected five-member Town Board. Budgeted appropriations for 2017 total approximately $2.3 million.

Key Findings

  • The Board did not develop realistic budgets for its four major operating funds, which resulted in operating surpluses.
  • Town officials have not developed a policy for acceptable levels of fund balance to maintain.
  • Town officials have not developed long-term financial and capital plans.

Key Recommendations

  • Develop and adopt budgets that include realistic estimates for revenues and expenditures.
  • Develop a fund balance policy that establishes the levels of fund balance, including reserves, to be maintained in each fund to meet the Town’s needs.
  • Develop comprehensive multiyear financial and capital plans.