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

• Since 2015, the total combined fund balance in the general and highway funds increased by $450,000 and, as of December 31, 2017, was 83 percent of 2017 expenditures.
• Over the last three years, conservative budgeting led to combined overestimated expenditures of $495,000 and underestimated revenues of $226,000 in the general and highway funds which contributed to the surpluses generated.
• Officials have not developed multiyear financial or capital plans to address significant infrastructure and equipment needs.

Key Recommendations

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