Determine whether the Town of Hempstead Local Development Corporation’s (THLDC) Board of Directors (Board) effectively managed fund balance.
The Board did not effectively manage fund balance.
- The Board did not develop or adopt a fund balance policy that addresses what level of fund balance is needed or how any surplus funds will be used and the timeframe for doing so.
- The unrestricted fund balance grew to $2.4 million as of December 31, 2020.
- Allowing $2.4 million to accumulate and sit idle without a specific purpose to benefit the Town is not in the public’s best interest.
- Develop and adopt a comprehensive written fund balance policy and a plan to use surplus funds.
THLDC officials disagreed with certain aspects of our findings and recommendations but indicated they have initiated corrective action. Appendix B includes our comments on issues raised in the THLDC’s response letter.