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adopted six bond resolutions with a total estimated cost of $33.6 million.2 While Town officials prepared budgets for five of the six bond resolutions adopted, only one budget was included in the agenda packet and available for public review and it was incomplete. 3 Also, officials were unable to provide us with the watermain replacement project budget to support a bond resolution totaling approximately $1.6 million. Regarding the bond resolutions, we also determined the following: • In 2022, the Board adopted two bond resolutions, totaling $3.3 million, for road improvement and highway equipment expenditures. The Director of Finance (Director) stated that she accounted for these expenditures in the highway fund instead of the capital projects fund because this was what was done in the past. However, the acquisition, construction or improvement of capital assets should only be accounted for in a local government’s operating fund when the project is being financed by the operating fund which was not the case for these projects. • In 2022, the Board adopted a bond resolution for $1.8 million to purchase machinery and apparatus for construction and maintenance in the Town. In a correspondence to the Board, dated February 1, 2022, the Highway Superintendent estimated a cost between $1.8 million and $2 million for the purchase of nine new single-axel dump trucks equipped with snowplows and wing blades. However, as of December 31, 2024, the Town had purchased six trucks and a loader with a snowblower attachment totaling nearly $1.5 million or three less dump trucks than officials had estimated to purchase with the funds. Furthermore, the Director stated that these purchases were not charged to the capital projects fund because the Town had always charged road work and equipment expenditures to the highway fund. Recommendation 4 – Maintain Complete and Accurate Accounting Records and Provide the Board with Monthly Reports The Supervisor should ensure complete and accurate accounting records are maintained and provide the Board with monthly reports comparing actual revenues and expenditures to budgeted amounts. Status of Corrective Action: Not Implemented Observations/Findings: The Director provided the Board with monthly reports showing actual revenues and expenditures, but because there were no adopted budgets, the reports did not provide a true budget-to-actual comparison. Consequently, the Board would not be able to effectively monitor capital projects by ensuring financing sources were sufficient to fund expenditures or that project costs were in line with expected total project costs. The Director stated that budgetary information for capital projects was not provided to the Board in the past. However, she agreed that including the budgeted amount would help Board members monitor capital project activity more effectively. The Board should review the monthly budget-to- actual reports to properly monitor project spending and prevent cost overruns. 2 The bond resolutions reviewed do not correspond to the seven capital projects noted in our observations/findings for Recommendations #1 and #2. 3 One bond resolution contained budgets for three water districts. However, only one of these budgets was included in the agenda packet. 4