Village of Morris – Fund Balance (2017M-58)

Issued Date
June 09, 2017

Purpose of Audit

The purpose of our audit was to evaluate the Village’s fund balance management for the period June 1, 2015 through February 1, 2017.


The Village of Morris is located in the Town of Morris in Otsego County and serves approximately 600 residents. The Village is governed by an elected three-member Village Board. General fund and water fund budgeted appropriations for 2016-17 were $477,785 and $153,000, respectively.

Key Findings

  • Over the last three years, the general fund balance increased by 42 percent to $338,000, or 159 percent of actual expenditures, and the water fund balance increased by 58 percent to $238,700, or 240 percent of actual expenditures.
  • The Board overestimated revenues in the general fund by $358,000 (an annual average of 35 percent), and overestimated expenditures in the general fund by $841,000 (an annual average of 59 percent).
  • In both the general and water funds, the contingency budget line exceeded the maximum allowable amount each year by an average of over $46,000 and $61,000, respectively.

Key Recommendations

  • Use general and water surplus funds as a financing source for funding one-time expenditures, funding needed reserves and reducing real property taxes.
  • Adopt budget estimates for revenues and expenditures that reflect the Village’s realistic operating needs based on historical or other known trends.
  • Ensure that the contingency budget line does not exceed the maximum allowable amount in both the general and water funds.