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Audit Objective

Determine whether the Board effectively managed fund balance.

Key Findings

• The Board’s management of fund balance was not effective. As a result, general and highway fund balances increased significantly over the 2015 through 2017 fiscal years.
• The Board did not adopt fund balance, reserve or budgeting policies or multiyear financial and capital plans.

Key Recommendations

• Periodically monitor adopted budgets and make necessary amendments and transfers as needed.
• Establish budgeting, fund balance and reserve polices and develop multiyear financial and capital plans.
• Use surplus funds as a financing source for funding one-time expenditures, needed reserves and/or reducing property taxes.

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