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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts


Town of Canandaigua – Fund Balance, Water Operations and Information Technology (2017M-109)


Released: September 29, 2017 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to evaluate the Town’s financial management, oversight of water district financial operations and IT controls for the period January 1, 2015 through April 12, 2017.

Background

The Town of Canandaigua is located in Ontario County and has a population of approximately 10,000 residents. The Town is governed by an elected five-member Town Board. Appropriations for 2017 totaled approximately $10.5 million.

Key Findings

  • While the Board budgeted for the use of appropriated fund balance and reserves as a financing source from 2014 through 2016, the more than $1 million in total appropriated fund balance went unused.
  • The Board did not develop a long-term financial or capital plan, including a plan for reserves, or require a cash flow analysis.
  • While certain water operations are tracked in the Town’s accounting software, separate fund balance records for each water district are not maintained in the software.
  • The Board has adopted acceptable IT use policies, but it has not ensured the policies are enforced or monitored.
  • The Town has one bank it uses for online transactions but does not have a sufficient written online banking agreement.

Key Recommendations

  • Adopt budgets with realistic estimates of revenues, expenditures and the amount of fund balance to be used to fund operations.
  • Develop and adopt comprehensive multiyear financial and capital plans and plan for reserves.
  • Establish appropriate accounting records and account for each water district as a separate entity.
  • Ensure that officials and employees receive adequate Internet security awareness training and training on the Town’s IT policies.
  • Ensure that the Town has a sufficient written online banking agreement.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236