Addison Central School District – Financial Condition (2016M-30)

Issued Date
June 10, 2016

Purpose of Audit

The purpose of our audit was to examine the District’s financial condition for the period July 1, 2012 through December 15, 2015.


The Addison Central School District is located in the Towns of Addison, Cameron, Canisteo, Erwin, Lindley, Rathbone, Thurston, Troupsburg, Tuscarora and Woodhull in Steuben County. The District, which operates three schools with approximately 1,100 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $28.8 million.

Key Findings

  • During the last three completed fiscal years, the Board and District officials overestimated general fund appropriations by 9 percent, resulting in a combined operating surplus of $6.4 million.
  • Appropriated fund balance of approximately $570,000 was not needed to finance operations.
  • Four of the District’s reserves are overfunded and potentially unnecessary.
  • The District’s school lunch fund balance exceeded federal regulations.
  • The Board and District officials have not developed a formal, written multiyear financial plan.

Key Recommendations

  • Adopt budgets that include the District’s actual needs, based on available current information and historical data.
  • Discontinue the practice of adopting budgets that result in the appropriation of fund balance and reserve funds that will not be used.
  • Review all reserves and determine if the amounts reserved are necessary, reasonable and in compliance with statutory requirements.
  • Develop a plan to reduce excess school lunch fund balance to adhere to federal regulations.
  • Develop a multiyear financial plan.