An audit by state Comptroller Tom DiNapoli concludes officials in the Hudson Valley town of Wawayanda did not properly manage public finances, but its town supervisor doesn't necessarily see it that way.

In an audit released Wednesday, DiNapoli's office states the town adopted budgets that underestimated revenues by about $5.2 million and budgeted $2.2 million of its fund balance it didn't need to use.

The audit covered Jan. 1, 2023 to Sept. 17, 2024, and was extended back to Jan. 1, 2019, to analyze trends.

It found the board did not effectively manage the town’s fund balance over the five years and did not adopt a fund balance policy, resulting in the fund balance to increase by $3.4 million to $7.7 million at the end of 2023, or 118% of the 2024 appropriations.

"No rationale was established for maintaining this level of unrestricted fund balance. As a result, real property tax obligations for Town residents were likely higher than necessary," the audit states.

It calls on the town board to provide oversight to ensure financial operations are properly managed.

Town Supervisor Denise Quinn responded Thursday in an email to Spectrum News 1. She said the board is in the process of establishing a fund balance policy, but has acted cautiously in estimating income to promote financial stability and that approach has provided a healthy financial safety net.

"The way we budget allows the board to make important adjustments to meet the needs of the community without burdening the tax payers of our town," Quinn said in her statement. "In closing if the State did their budget the way the Town of Wawayanda did the State would be in a much better financial position. Instead, residents are leaving the State to live in other areas of the country that are more affordable."