Afton Central School District –Management of Fund Balance and Reserves (2016M-134)

Issued Date
July 15, 2016

Purpose of Audit

The purpose of our audit was to assess District officials’ management of fund balance and reserves for the period July 1, 2014 through February 3, 2016.


The Afton Central School District is located in the Towns of Coleville, Sanford, Afton, Bainbridge and Coventry and the Village of Afton in Chenango County. The District, which operates one school with approximately 575 students, is governed by an elected five-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year totaled approximately $15.2 million.

Key Findings

  • The unrestricted fund balance has been well over the statutory limit for the past several years.
  • Certain reserves had excessive balances when compared to their respective liabilities.

Key Recommendations

  • Ensure that unrestricted fund balance remains in compliance with the statutory limit.
  • Review all reserve balances and transfer overfunded amounts to unrestricted fund balance, where allowed by law, or other reserves established and maintained in compliance with statutory directives.