Town of Owasco – Financial Management and Procurement (2021M-70)

Issued Date
August 13, 2021

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Audit Objectives

Determine whether the Town of Owasco (Town) Board (Board) effectively managed fund balances and reserves for the general, water and sewer district funds and has multiyear financial and capital plans.

Determine whether professional services and playground equipment were procured in a manner to ensure the prudent and economical use of public money in the best interests of the taxpayers.

Key Findings

The Board did not effectively manage fund balance and reserve levels, establish multiyear plans or ensure the proper procurement of professional services and playground equipment. The Board did not:

  • Adopt an adequate reserve policy, resulting in the unrestricted general fund balance increasing to an excessive level.
  • Always seek competition for professional services or have adequate written agreements for the services provided.
  • Properly procure playground equipment totaling $397,000.

Key Recommendations

  • Develop and adopt a detailed and sufficient reserve policy.
  • Develop policies and procedures for procuring and awarding professional service contracts.
  • Ensure equipment is procured in accordance with applicable policies and statutes.

Town officials agreed with our findings and recommendations and indicated that they plan to take corrective action.