Village of Washingtonville – Financial Condition (2013M-346)

Issued Date
April 04, 2014

Purpose of Audit

The purpose of our audit was to assess the Village’s financial condition for the period March 1, 2011 through February 29, 2012.

Background

The Village of Washingtonville is located in Orange County. The Village Board is responsible for managing Village operations. The Village’s budgeted expenditures for the 2011-12 fiscal year were approximately $3.9 million for the general fund, $700,000 for the water fund and $1.1 million for the sewer fund.

Key Findings

  • Village officials did not always adopt realistic budget estimates and monitor the budget, resulting in operating deficits in the Village’s three operating funds (general, water and sewer). During the period covered by our analysis, Village officials overestimated certain revenues and allowed appropriations to be overexpended causing deficits in these funds.
  • The Board allowed appropriations to be overexpended for many line items and in total for the general fund budget.
  • The Board has not developed comprehensive, multiyear financial and capital plans to improve the budget development process.

Key Recommendations

  • Develop and adopt budgets that include realistic estimates for revenues and expenditures, and monitor operations throughout the year and make the necessary adjustments to ensure that operating deficits do not occur.
  • Establish procedures to prevent overspending budget lines and ensuring that the Village is not committed to any payment before verifying that a sufficient appropriation is available.
  • Develop a multiyear financial plan that establishes priorities and goals, considers revenue and expenditure trends, and plans for the future use of reserve funds. Frequently monitor and update the plans to ensure that its decisions are based on the most accurate and up-to-date financial information.