LISBON -- New York State Comptroller's office has criticized the Lisbon Town Board for holding an excessive fund balance and failing to adopt a policy for managing the money.
According to the audit released by the State Comptroller's office, the town has accumulated a significant amount of surplus funds in the general fund and has not adopted a policy to address the unexpended surplus.
According to the audit the town had a year-end fund balance of more than $1 million in 2011, which is well above the state recommendation.
Auditors said the town over estimated its budget in 2008, 2009, and 2010 and failed to take action to address the surplus.
The audit calls for the board to adopt a policy and develop procedures to ensure that the amount of unexpended surplus funds is"reasonable."
The audit also suggests the board use the unexpended funds to develop an reserves funds that outline what the money can be used for, paying down the tax levy or financing one-time expenditures.
A response from Supervisor James W. Armstrong was also included in the report.
Armstrong said the town has used the fund balance to address one-time purchases and to balance unexpected expenses to prevent spikes in the tax rate.
"For the past two years discussions concerning that use of reserve accounts have take place during the budget process," Armstong said his letter.
Armstrong said the board will set up reserve accounts for the purchase of highway equipment and other town needs in 2012.
"It is the goal of the town board to work on a long term financial and capital plan in 2013 to help appropriate use and monitoring of the reserve accounts," Armstrong said.