Connetquot Central School District - Financial Management (2019M-180)

Issued Date
November 01, 2019

[read complete report - pdf]

Audit Objective

Determine whether the Board and District officials effectively managed the District’s financial condition.

Key Finding

  • The District reduced its total fund balance by $12.3 million (20 percent) from June 30, 2017 to June 30, 2019. However, its unassigned fund balance remains at $8 million,1 0.1 percentage points above the statutory limit.

Key Recommendations

  • Review the District’s plan to continue reducing its surplus of unassigned fund balance to comply with the statutory limit in a manner that benefits District taxpayers.
  • Develop budgets that include realistic estimates for revenues, appropriations and unassigned fund balance based on historical data and known trends.
  • Adopt a comprehensive reserve policy that communicates the purpose and intent for establishing each reserve fund levels and conditions under which each fund’s assets will be used or replenished.

District officials generally agreed with our report and indicated they plan to initiate corrective action.

1 As per an October 28, 2019 draft of the 2018-19 audited financial statements.