Audits of Local Governments and School Districts
Village of Hempstead – Budget Review (B7-12-12)
Released: April 13, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our budget review was to determine whether the significant revenue and expenditure projections in the Village’s tentative budget for the 2012-13 fiscal year are reasonable.
Background
The Village of Hempstead, located in Suffolk County, issued debt totaling $4.2 million to liquidate the accumulated deficits in the Village’s general and water funds as of May 31, 2005. Local Finance Law requires that all local governments that have been authorized to issue obligations to fund operating deficits submit their tentative budgets for the next fiscal year to the State Comptroller for review while the deficit obligations are outstanding.
Key Findings
- Based on the results of our review, we found that the significant revenue and expenditure projections in the tentative budget are reasonable. We encourage Village officials to continue to monitor revenues and expenses in the water fund to help ensure that the water fund’s financial condition continues to improve.
- The Village’s tentative budget complies with the property tax levy limit. Although the Village tax levy increase is below 2 percent, the Board adopted a local law on January 17, 2012, that would allow it to override the tax cap, if necessary.
Key Recommendations
- There are no recommendations in this budget review letter.
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