Village of Palmyra - Financial Management (2019M-94)

Issued Date
August 16, 2019

[read complete report - pdf]

Audit Objective

Determine whether the Board adopted realistic budgets and effectively managed fund balance based on accurate financial records and reports.

Key Findings

  • The water and sewer funds maintained excessive unrestricted fund balance levels, as a result of unrealistic budgets.
  • Village officials have not developed multiyear financial or capital plans or a fund balance policy.
  • The Board did not audit the Clerk-Treasurer’s records and reports or identify and address improper budgeting and accounting practices that resulted in inaccurate accounting records and reports.

Key Recommendations

  • Adopt realistic budgets and reduce excessive fun and a fund balance policy.
  • Annually audit the Clerk-Treasurer’s records and reports to ensure they are accurate.

Village officials agreed with our recommendations and indicated they planned to initiate corrective action.