Purpose of Audit

The purpose of our audit was to examine the Village’s financial condition for the period June 1, 2014 through July 10, 2015.

Background

The Village of Pomona is located in the Towns of Haverstraw and Ramapo in Rockland County. The Village, which has a population of approximately 3,100, is governed by a Village Board. The general fund’s budgeted appropriations for the 2015-16 fiscal year totals approximately $2.4 million.

Key Findings

• The Village has an estimated fund balance deficit of $933,000 as of the end of fiscal year 2014-15.
• Village officials have not developed a multiyear plan to address the Village’s deficits.
• The Board allowed budget line items to be overexpended and budget transfers to be made after the end of the fiscal year rather than throughout the year when needed.
• The Board does not receive audited financial statements in a timely manner.

Key Recommendations

• Develop a plan to eliminate the fund balance deficit and alleviate the general fund’s fiscal stress.
• Develop a multiyear plan that includes provisions to address the fiscal stress in the general fund.
• Adopt a budget transfer policy, conduct a careful and thorough review of the monthly budget status reports and ensure that funds are transferred in a timely manner so that budget lines items are not overexpended.
• Ensure that the independent auditor provides audited financial statements in a timely manner.