Purpose of Audit
The purpose of our audit was to examine the City’s financial condition for the period January 1, 2013 through March 1, 2017.
The City of Elmira is located in Chemung County and has a population of approximately 28,200. The City is governed by an elected seven-member City Council. General fund budgeted appropriations for 2017 total approximately $31.7 million.
- Financial information was not reported timely during the fiscal year, and annual financial reports were not filed on time with OSC.
- The City incurred operating deficits from 2013 through 2015 totaling $4.5 million, and unassigned fund balance that totaled $1.8 million at the end of 2013 declined to a deficiency of more than $1.6 million at the end of 2015.
- State aid revenue was not appropriately restricted for revenue anticipation note (RAN) repayment as statutorily required.
- Require routine financial reporting during the year and timely filing of annual financial reports.
- Closely monitor the City’s finances, including available fund balance and cash balances, to prevent further decline in financial condition.
- Include appropriations in the subsequent year’s budget to redeem RANs or require that revenues be restricted for repayment.