Eldred Central School District - Financial Condition (2018M-138)

Issued Date
October 19, 2018

[read complete report - pdf]

Audit Objective

Determine whether District officials properly managed the District’s financial condition.

Key Findings

  • The Board relied on unrestricted fund balance to fund recurring expenditures. As of June 30, 2017, the District’s unrestricted fund balance was less than 0.5 percent of 2018 appropriations. The District’s unrestricted fund balance had been completely exhausted as of June 30, 2018.
  • The school lunch fund relies heavily on general fund subsidies and loans. As of June 30, 2017, the school lunch fund owed the general fund over $100,000 that it may not be able to pay back.

Key Recommendations

  • Establish a multiyear financial plan that seeks to fund recurring expenditures with recurring revenues.
  • Implement cost savings and revenue enhancements for the school lunch fund to be less reliant on the general fund for subsidies and loans.

District officials agreed with our recommendations and indicated they planned to take corrective action.