Delaware Academy Central School District at Delhi – Fund Balances (2016M-36)

Issued Date
June 10, 2016

Purpose of Audit

The purpose of our audit was to evaluate the District’s financial management practices for the period July 1, 2014 through November 9, 2015.


The Delaware Academy Central School District at Delhi is located in the Towns of Andes, Bovina, Delhi, Franklin, Hamden, Kortright and Meredith, Delaware County. The District, which operates two schools with approximately 750 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $19.7 million.

Key Findings

  • District officials appropriated more fund balance than was needed over the five-year period ending June 30, 2015.
  • The District overfunded five of its six reserves as of June 30, 2015.
  • District officials did not use debt service funds to make payments on long-term debt.

Key Recommendations

  • Discontinue the practice of appropriating unexpended surplus funds that will not be used.
  • Adopt a reserve fund plan, review all reserve balances and transfer excess funds to unrestricted fund balance, where allowed by law, or use the funds for their designated purposes.
  • Use available debt service funds to pay debt service principal and interest.