Audit Objective
Determine whether the Town of Sheridan (Town) was reimbursed equitably for shared service costs incurred pursuant to an intermunicipal agreement (IMA) and whether the Town Board (Board) conveyed land in a transparent and equitable manner.
Key Findings
The Town was not reimbursed equitably for shared service costs related to the IMA and the operating group Chadwick Bay Intermunicipal Water Works (CBI). Because the Board did not monitor the IMA’s operations and labor costs, Town taxpayers paid $125,736 to provide services to customers in three other towns and a village benefitting from the IMA. Officials also did not collect about $21,000 from CBI for Town office space the group uses.
In addition, the Board did not convey land to Chautauqua County (County) in a transparent and equitable manner. The Board and former Supervisor donated 6.2 acres of Town land to the County without conducting a cost-benefit analysis or evaluating whether the conveyance was in the Town taxpayers’ best financial interest. Although the County installed a water storage tank on the land and installed water lines, there is no existing water district or documented plans to establish a water district near these improvements; therefore, there currently is no benefit to Town taxpayers.
Key Recommendations
- Develop procedures for tracking and billing CBI for the reimbursement of CBI expenditures.
- Develop a written rental agreement for the use of office space and collect unpaid rent.
- Take appropriate measures when conveying real property to help ensure the conveyance is in the best interest of Town taxpayers.
Town officials generally agreed with our recommendations and have initiated corrective action.