Determine whether the Town of Greig (Town) Board (Board) established long-term plans and financial policies to manage the Town’s finances.
The Board did not establish long-term financial and capital plans or fund balance and reserve policies. As a result, the Board lacks important tools to project current and future operating and capital needs and has not outlined its intentions for financing future capital improvements or equipment purchases. We reviewed the Town’s capital assets and found:
- 15 of the 27 pieces of major highway equipment (56 percent) were beyond their optimal useful life.
- Some of the highway equipment beyond optimal useful life had observable damage.
A lack of properly functioning highway equipment contributed to the Town being unable to use more than $73,000 of available State aid funding as of the end of 2021.
- Develop and adopt long-term written financial and capital plans to help ensure financial resources are available to replace capital assets in a timely manner.
- Develop and adopt a comprehensive written fund balance and reserve policy.
Town officials agreed with our recommendations and have initiated, or they plan to initiate corrective action.