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NYS Comptroller

THOMAS P. DiNAPOLI

Taxpayers' Guide to State and Local Audits

Audits of Local Governments and School Districts

Village of Fort Edward – Financial Condition (2012M-175)


Released: December 14, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to evaluate the Village's financial condition for the period June 1, 2010, to October 25, 2011.

Background

The Village of Fort Edward is located in Washington County and has a population of almost 3,600 residents. The Village Board is comprised of four elected Trustees and an elected Village Mayor. The Village's general fund budget for fiscal year 2011-12 was $2.1 million.

Key Findings

  • The reported unreserved fund balances for the water fund (-$114,017) and the general fund (+$475,041) were inaccurate due to various accounting errors. After adjusting for these accounting errors, the water fund's deficit was reduced to $10,454 and the general fund's positive balance was reduced to $290,041.
  • The water fund's continued reliance on the general fund to fund operating costs will result in an inequity among low-usage tax payers, and is impairing the general fund's financial condition.
  • The Board has not yet adopted a long-term financial and capital plan for the water fund.

Key Recommendations

  • Consider establishing water rates that are sufficient to finance water fund operations, including water-related debt payments. Review and address the outstanding interfund loan balance owed to the general fund by the water fund by either forgiving the loan or providing for its repayment.
  • Develop a plan to address long-term infrastructure improvements to the water system.

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