LAPEER — A recent audit by New York State Thomas P. DiNapoli’s office found that the five-member board that governs the Town of Lapeer in Cortland County did not develop and adopt realistic budgets. As a result, the unrestricted fund balance in these funds increased to levels between 85 percent and 182 percent of the […]
LAPEER — A recent audit by New York State Thomas P. DiNapoli’s office found that the five-member board that governs the Town of Lapeer in Cortland County did not develop and adopt realistic budgets.
As a result, the unrestricted fund balance in these funds increased to levels between 85 percent and 182 percent of the 2024 appropriations, as of Dec. 31, 2023.
The audit — which covered the period from Jan. 1, 2021 to April 30, 2024 — determined that estimated revenues were underestimated in the town’s general and highway funds, and budgeted appropriations were overestimated in the general fund. This resulted in operating surpluses totaling $669,365 during fiscal years 2021, 2022, and 2023.
Lapeer’s actual revenues exceeded estimated revenues by an average of $147,251 (81 percent) and $99,605 (29 percent) in the general and highway funds, respectively, according to the comptroller’s office.
Actual expenditures in the town were less than appropriations by an average of $38,397 (19 percent) in the general fund.
In addition, the Lapeer Board has not developed and adopted a written fund-balance policy specifying the town’s objectives and goals for using the accumulated funds, the comptroller’s office contended.
DiNapoli’s audit report includes three recommendations that, if implemented, will help Town of Lapeer officials improve their budgeting practices.
The comptroller’s office said Town of Lapeer officials “disagreed with certain aspects of our findings and recommendations, but indicated they planned to initiate corrective action.”
Specifically, Lee Brown, deputy supervisor of the Town of Lapeer, wrote the following in a letter responding to the comptroller’s audit report: “It is our [board’s] unanimous decision that we did little or nothing wrong. We maintain that it is far better for the Town to have a surplus than a deficit; although, we do admit that our surplus is becoming burdensome.”
Later in the letter, Brown added, “We agree that we could budget closer to the actual costs and possibly use some surplus funds. We also agree that we could utilize a three year average to determine budget line item figures instead of one year.”
Lapeer is located at the southern edge of Cortland County and has a population of between 700 and 800 people.
