Fort Edward Union Free School District - Financial Condition (2019M-245)

Issued Date
May 01, 2020

[read complete report - pdf]

Audit Objective

Determine whether the District maintained adequate fund balances.

Key Findings

  • The District’s financial condition significantly declined due to a successful tax certiorari challenge. As a result, unrestricted fund balance as of June 30, 2019 totaled less than 1 percent of the next year’s appropriations.
  • Based on the District’s outstanding tax certiorari liability of approximately $1.8 million, the District has an unfunded liability of approximately $873,000 as of July 31, 2019.
  • District officials did not adopt a multiyear financial plan to address future unexpected revenue shortfalls or unanticipated expenditures.

Key Recommendations

  • Adopt a multiyear financial plan that is annually updated.
  • Continue to explore options to provide for revenue enhancement, cost savings opportunities and to fund the tax certiorari liability.

District officials generally agreed with our recommendations and have initiated, or indicated they planned to initiate corrective action.