Audits of Local Governments and School Districts
Village of Herkimer – Budget Review (B3-12-11)
Released: April 18, 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.
The Village of Herkimer, located in Herkimer County, issued debt totaling $1.6 million to finance the settlement of litigation with the County of Herkimer regarding amounts owed to the County for workers’ compensation costs. 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.
- The Village budget as proposed results in a tax levy that appears to exceed the Village’s constitutional tax limit, which could result in reductions of $40,000 in other Village revenue.
- The Village has proposed a limited contingency account.
- We identified at least $228,000 of expenses that are not included in the budget.
- The budget does not make provisions for any possible cost increases that may result from collective bargaining agreements.
- Do not raise taxes in excess of the constitutional tax limit and adjust the budget as necessary.
- Consider increasing the contingency appropriation in the adopted 2012-13 budget.
- Adjust the amounts appropriated in the 2012-13 budget for the expenses not included in the budget.
- Increase revenues or decrease appropriations in other budget lines if collective bargaining results in salary increases and/or retroactive payments to employees.
Local Government and School Accountability Contact Information:
Phone: (518) 474-4037; Email: email@example.com
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236