Auditors: Nanticoke town board mismanaged fund balance
Jan 9, 2018
State auditors have reviewed and critiqued financial activity in the Town of Nanticoke.
In an audit report on the five-member town board's activity released Jan. 5, Comptroller Thomas DiNapoli's office found the board did not effectively manage its fund balance.
According to the report, budgeted general fund appropriations from 2014 to 2016 exceeded expenditures by an annual average of 15 percent and the general fund's year-end balance increased by 75 percent during that time, from $275,000 to $482,000.
During the time period reviewed, from Jan. 1, 2016 through May 15, 2017, officials said town officials had not developed a written multiyear financial or capital plan or a fund balance policy.
General fund appropriations for 2017 were $399,288, according to the report.
In the report, auditors recommended the town officials develop and adopt a comprehensive, multiyear financial and capital plan, a fund balance policy that establishes the level of fund balance to be maintained, and adopt budgets with realistic expenditure estimates.
In the report's printed response from town officials, Town of Nanticoke Supervisor Donald Benjamin said it's important to note how the extra funds were gathered.
Most of the extra money, he wrote, "was due to more income coming in from Broome County Sales Tax and Broome County Landfill tipping fees."
Benjamin said the town plans to spend between $150,000 and $200,000 in 2018 on town hall upgrades and repairs and, going forward, "will reduce and or eliminate the town tax if the general fund reaches $700,000."