Town of Middlefield – Budgeting (2015M-109)

Issued Date
August 14, 2015

Purpose of Audit

The purpose of our audit was to assess the Board’s practices regarding adopting, monitoring and controlling the budgets for the period January 1, 2013 through January 6, 2015.

Background

The Town of Middlefield is located in Otsego County and has a population of approximately 2,100. The Town is governed by an elected five-member Town Board. The Town’s 2015 budgeted appropriations totaled over $1.3 million.

Key Findings

  • The Board consistently adopted unrealistic budgets and relied on one-time revenues to fund operations.
  • The Board did not approve budget line transfers throughout the 2011 through 2014 fiscal years, allowing various budget lines to be overspent.
  • While the Supervisor provided the Board and Department heads with monthly budget to actual reports and a listing of the receipts and disbursements, there was no evidence that the Board and Department heads discussed them.

Key Recommendations

  • Adopt realistic, structurally sound budgets which reduce the Town’s reliance on one-time revenues, such as fund balance, as a financing source for recurring expenditures.
  • Perform timely budget transfers when necessary.
  • Utilize budget to actual reports to monitor Town operating funds’ financial status throughout the year.