Margaretville Central School District – Financial Management (2020M-46)

Issued Date
June 26, 2020

[read complete report - pdf]

Audit Objective

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

Key Findings

  • The Board overestimated appropriations and appropriated approximately $1.4 million in fund balance from 2016-17 through 2018-19 that it did not use to fund operations because of generated operating surpluses.
  • As of June 30, 2019, surplus fund balance totaled approximately $3.9 million or 32 percent of the next year’s budget, exceeding the statutory limit.
  • When unused appropriated fund balance was added back to and overstated receivables were deducted from surplus fund balance, it totaled almost $3.2 million, exceeding the statutory limit by approximately $2.7 million or 22 percent as of June 30, 2019.

Key Recommendations

  • Adopt budgets that include reasonable estimates for appropriations and the amount of fund balance that will be used to fund operations.
  • Reduce surplus fund balance to comply with the statutory limit and use excess funds in a manner beneficial to taxpayers.