Determine whether the Town of Freedom (Town) Board (Board) adopted realistic budgets and maintained reasonable levels of fund balance.
The Board did not develop and adopt realistic budgets or determine how much fund balance should be maintained. As a result, the Town maintained unreasonable fund balance levels, which ultimately resulted in a higher-than-necessary tax levy.
- Consistently underestimated revenues in the general and highway funds. As a result, unrestricted fund balance in these funds increased by 45 percent during the past three years to approximately $735,000 as of December 31, 2020, or 69 percent of the 2021 fund appropriations.
- Did not establish and adopt comprehensive, written, multiyear financial and capital plans or fund balance and reserve policies.
- Adopt annual budgets that contain reasonable revenue estimates.
- Develop and adopt comprehensive, written, multiyear financial and capital plans and fund balance and reserve policies.
Town officials agreed with our recommendations and indicated they planned to initiate corrective action.