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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Report Highlights

Town of Dayton - Fund Balance Management (2019M-221)

Released: January 31, 2020 -- [read complete report - pdf]

Audit Objective

Determine whether the Board has properly managed fund balance.

Key Findings

  • The Board did not properly manage fund balance as the town-wide (TW) general fund and TW highway fund had deficit unrestricted fund balances during our audit period.
  • The Board did not develop and adopt comprehensive written multiyear financial and capital plans and written fund balance and reserve fund policies to help guide the budget development process.
  • Outstanding interfund cash advances from 2016 have not been repaid as required.

Key Recommendations

  • Evaluate the financial activity in the TW general fund and TW highway fund and establish a plan to eliminate deficit fund balances and ensure that those funds are self-sustaining.
  • Develop and adopt comprehensive written multiyear financial and capital plans and written fund balance and reserve fund policies.
  • Repay the interfund cash advances as required.

Town officials generally agreed with our recommendations and indicated they planned to initiate correction action. Appendix B includes our comment on an issue raised in the Town’s response.

Background

The Town of Dayton (Town) is located in Cattaraugus County (County).

The Town is governed by an elected Town Board (Board) composed of five members including the Town Supervisor (Supervisor). The Board is responsible for the general oversight of the Town’s operations and finances. The Supervisor is the chief financial officer and is responsible for the day-to-day financial operations.

The Town provides various services to its residents. Because the Village of South Dayton is within the Town’s boundaries, the Town’s services are accounted for in four major operating funds.

Beginning January 1, 2018, the Board entered into an agreement with a certified public accounting firm (Firm) to assist the Supervisor in performing her financial duties.

Quick Facts
Population1,800
2019 Budgeted General Fund* Appropriations$222,100
2019 Highway Fund* Appropriations$426,100
*Includes town-wide and part-town funds

Audit Period

January 1, 2016 – June 4, 2019


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