Tyrone audit reveals fiscal problems

TYRONE--A recently released state audit has highlighted the fiscal issues of the town of Tyrone, claiming "the town board did not properly oversee the town's fiscal operations." According to an audit released Friday, Feb. 20 by the New York State Office of the Comptroller, the Tyrone town board did not adequately maintain the town's financial situation, while it also "has not provided sufficient oversight to town departments collecting and disbursing cash by performing an annual audit." The audit reviewed the board's financial management from Jan. 1, 2010, to Sept. 26, 2014.
"Poor budgeting, along with overspending in the highway fund, has caused cash flow problems, which required inter-fund transfers and advances from the general fund to pay bills over the last several years," according to the audit.
Some of the key findings of the audit included the town "should avoid relying on surplus fund balance as a revenue source to finance recurring expenditures, which ultimately depletes fund balance below a reasonable level." The audit finds the town has not developed policies, procedures or multi-year financial plans to govern budgeting practices. The audit also highlights the fact the board does not perform an annual audit of the records of any department that collects money.
The audit claims the town's adopted budgets were not based on "sound and realistic estimates of revenues and expenditures." The audit also says the state found the town board members were not familiar with fund balance terminology and have not attended financial training that would provide them the skills to budget effectively. The highway fund and actions of its highway superintendent were also scrutinized by the state.
"The superintendent overspent the highway fund budget by $210,488 over the last three years, and the board underestimated revenues by $140,456 over the last four years," according to the audit. "The significant revenue variances in 2010 and 2011 were due to the superintendent failing to ensure the timely submission of the 2010 CHIPS (Consolidated Local Street and Highway Improvement Program) claims, which resulted in both the 2010 and 2011 CHIPS revenues being received in 2011. CHIPS funds were also underestimated by approximately $36,000 in 2013."
The comptroller's office listed recommendations for the town to follow, which includes developing fiscal policies for determining the level of fund balance that must be maintained for sufficient cash flow and other purposes. The state also recommends Tyrone develops structurally balanced budgets and a formal, comprehensive multi-year plan for restoring fund balance, along with performing or hiring an independent auditor to conduct an annual audit.
Tyrone Supervisor Donald Desrochers listed his responses to the audit, saying the board and supervisor recently attended a "Financial Responsibilities of Elected Officials" program to learn more about planning, budgeting, auditing, accounting and financial reporting. He said in addition to this, the board is forming a committee to generate policies aimed at making the highway superintendent accountable for staying within the highway budget. Desrochers also claims the board plans to audit records and reports of the town clerk, justice and supervisor before or at the March 15 board meeting, along with having the supervisor seek board approval for all cash advances and amounts. He said the supervisor will also provide monthly cash flow projections to the board so it can make informed financial decisions.
"The preliminary audit results have been reviewed and discussed with the board," Desrochers said. "We concur with the audit recommendations and will be developing a corrective action plan to be submitted within 90 days of the release of the final audit report."
Desrochers did not return a call for further comment by press time.