Village of Candor – Fund Balance (2017M-148)

Issued Date
October 27, 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 May 31, 2017.


The Village of Candor is located in the Town of Candor in Tioga County and has a population of approximately 850. The Village is governed by an elected five-member Village Board. Budgeted appropriations for the 2017-18 fiscal year for the general fund are $297,735 and for the water fund are $173,075.

Key Findings

  • Although fund balance declined by $117,000 (35 percent) in 2016-17, the balance as of May 31, 2017 was $213,000, or 78 percent of the average annual expenditures over the last three years, and the Board has no clear plans for the use of the accumulated funds.
  • The Board has not developed a fund balance policy.

Key Recommendations

  • Reduce the amount of general fund balance and use the excess in a manner that benefits Village residents.
  • Adopt a comprehensive fund balance policy that addresses budgeting practices and establishes the levels of fund balance to be maintained.