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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Village of Silver Creek – Capital Projects (2017M-31)


Released: May 19, 2017 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to evaluate the Village’s capital projects for the period June 1, 2015 through January 17, 2017.

Background

The Village of Silver Creek is located in the Town of Hanover in Chautauqua County and has a population of approximately 2,600. The Village is governed by an elected five-member Board of Trustees. General fund appropriations for the 2016-17 fiscal year were approximately $2 million.

Key Findings

  • The Board did not develop a long-term plan that evaluated the sewer or water capital projects’ financial impact on the annual operating budget.
  • The sewer fund reported a deficit fund balance and a $293,000 interfund loan payable to the general fund.
  • The Board did not approve water capital project change orders, which resulted in the project’s budget being overspent by $179,000.

Key Recommendations

  • Develop a long-term financial plan that addresses capital projects and revise the plan as needed.
  • Develop a plan to eliminate the deficit fund balance in the sewer fund and to repay the general fund in a timely manner.
  • Develop written policies and procedures for the oversight and management of capital project finances that include a formal process for approving change orders and monitoring project costs.

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