Village of Saranac Lake details annual financial report and review

SARANAC LAKE | The Village of Saranac Lake is providing residents with an update on its ongoing financial review following completion of a draft Annual Financial Report for the fiscal year ending May 31, 2026. Earlier this year, the Village engaged BST & Co. CPAs, LLP to assist with year-end accounting, preparation of the Annual Financial Report, account reconciliations, financial reporting, and a broader review of Village accounting practices and internal controls. That work has provided the Village with a clearer assessment of its financial position and identified several areas requiring continued attention. GENERAL FUND The Village's General Fund balance declined from approximately $7.43 million at May 31, 2024, to $5.15 million at May 31, 2026, a decrease of approximately $2.28 million over two fiscal years. Approximately $1.28 million of the fiscal year 2025 decrease was attributable to the purchase of a fire truck. Excluding that purchase, the General Fund declined approximately $581,000 during fiscal year 2025 and another approximately $415,000 during fiscal year 2026. Of particular concern is the amount of General Fund balance that remains unrestricted and available for general purposes. As of May 31, 2026, unrestricted fund balance was approximately $570,000, equal to 7.9% of annual General Fund expenditures. BST recommends maintaining unrestricted fund balance equal to at least 15% of average annual expenditures. The adopted 2026-27 General Fund budget also appropriates $630,648 in fund balance to support current-year operations. Maintaining the current level of spending without budget modifications would make continued reliance on unrestricted fund balance increasingly difficult in future budgets. ACCOUNTING AND FINANCIAL REPORTING The review has also identified accounting and reconciliation practices requiring correction and improvement. Capital Projects and Community Development funds had been maintained out of balance for an undetermined period, including through the Village's transition to its current Springbrook financial software. BST has developed the accounting adjustments necessary to bring those funds into balance and is working with Springbrook on implementation. A high-level reconciliation of Village cash as of May 31 determined that cash was materially accurately reported. More detailed reconciliation procedures are now being established to ensure that Village accounting records are routinely reconciled against bank activity. The Village is also implementing regular budget-to-actual reporting, reserve reconciliations, capital project accounting and monthly financial reporting. The review also identified positive financial indicators. Both the Water and Sewer Funds generated surpluses during fiscal year 2026 and maintained substantial fund balances. MOVING FORWARD The Village's financial priorities now include: -Closely monitoring expenditure against the adopted budget -Establishing detailed financial tracking for individual capital projects -Reconciling Village reserves -Strengthening internal financial controls -Providing regular financial reporting to the Village Board and the public The Village expects this work to continue throughout the fall, with the goal of establishing a consistent monthly financial reporting process. "The Board has been clear about what it needs, accurate, timely financial information to make good decisions for residents. My focus is making sure we have the systems and reporting in place to provide that information throughout the year, not just at year-end. That's the work we're doing, and it's important work for the Village," said Village Manager Brandee Reiley. The draft Annual Financial Report remains subject to final review and filing with the New York State Office of the State Comptroller.

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Village of Saranac Lake details annual financial report and review

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