Allegany-Limestone Central School District - Financial Management (2018M-129)

Issued Date
August 31, 2018

[read complete report - pdf]

Audit Objective

Determine whether the Board and District officials effectively managed fund balance and reserves.

Key Findings

  • The Board’s budgeting practices included annually appropriating fund balance that was not used to finance operations and overestimating appropriations by $4.8 million (8 percent annual average) over a three-year period.
  • As of June 30, 2017, unrestricted fund balance totaled more than $2.2 million and was 10 percent of the 2017- 18 budgeted appropriations, exceeding the statutory limit by approximately $1.3 million or 6 percentage points.
  • Reserve funds are generally not being used1 and the retirement, repair and unemployment reserves are overfunded.

Key Recommendations

  • Adopt budgets that include reasonable estimates for appropriations and the amount of fund balance that will be used to fund operations.
  • Reduce unrestricted fund balance to within the statutory limit and use the excess funds in a manner more beneficial to taxpayers.
  • Review and fund reserve balances to reasonable levels in accordance with applicable statutes.

1 With the exception of the debt and capital reserves