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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Report Highlights

Town of Red Hook - Financial Condition (2018M-171)

Released: November 2, 2018 -- [read complete report - pdf]

Audit Objective

Determine whether the Board effectively managed the Town’s financial condition.

Key Findings

  • From January 1, 2013 through December 31, 2017, the general fund’s year-end fund balance increased from $292,780 to $917,351, or 213 percent.
  • In June 2018, the Board adopted a fund balance policy that allowed for unexpended surplus funds of up to 70 percent of annual expenditures. The policy did not define the time periods or means for which fund balance will be used and replenished.
  • The Board has not formalized or adopted comprehensive multiyear financial and capital plans specifying the Town’s objectives and goals for use of accumulated funds.

Key Recommendations

  • Consider reducing unrestricted fund balance and using the excess funds as a financing source in a manner that benefits taxpayers.
  • Revise the fund balance policy to ensure reasonable levels of fund balance and define timing and means of replenishment.
  • Formalize and adopt comprehensive multiyear financial and capital plans.

District officials generally agreed with our findings and indicated they plan to initiate corrective action.

Background

The Town of Red Hook (Town) is governed by an elected Town Board (Board), which is composed of the Town Supervisor (Supervisor) and four Board members. The Board is responsible for the general management and control of the Town’s financial operations, including adopting the annual budget and establishing financial policies.

The Supervisor serves as the chief executive officer, chief fiscal officer and budget officer and is responsible for day-to-day financial operations and for the development and administration of the budget. The Supervisor has appointed a bookkeeper to maintain the accounting records and assist in the financial reporting and filing.

Quick Facts
Population11,319
2017 General Fund Expenditures$1,730,661
2017 General Fund Revenues$1,800,715
2017 Unrestricted General Fund Balance$917,351
2018 Budgeted Appropriations$1,715,040
2018 General Fund Tax Levy$1,241,703

Audit Period

January 1, 2017 -- April 30, 2018.
We extended our scope back to January 1, 2013 to analyze financial trends.


Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.ny.gov
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236