LISBON – The state Comptrollers office found the town to be unnecessarily reserving money in its fund balance in an audit released Saturday.
The audit, which covered Jan. 1, 2010, to Dec. 31, 2011, found the town to be maintaining excessive amounts of unexpended surplus fund balance, in addition to lacking accurate budget estimates. The audit found the town had significantly overestimated expenses and underestimated revenues.
For example, in the 2010 budget, actual revenues were $98,661 or 19 percent more than the budgeted estimates while actual expenditures were $10,087, or 14 percent less than the amount budgeted, the audit found.
Town Supervisor James A. Armstrong said in a statement, The Town of Lisbon has used the fund balance as an unofficial reserve account to address one time purchases and unexpected expenses to prevent spikes in the tax rate for its citizens. It is the goal of the Town Board to work on a long term financial and capital plan in 2013 to help with the appropriate use and monitoring of the reserve accounts.
A written corrective action plan is due within 90 days. The Comptrollers office recommended the plan be made available for public review in the Town Clerks office.