Purpose of Audit

The purpose of our audit was to examine the District’s financial condition for the period July 1, 2010, to March 31, 2012.

Background

The Niskayuna Central School District is located in the Town of Niskayuna, in Schenectady County. The District is governed by the Board of Education which comprises seven elected members. The District’s expenditures for the 2011-12 fiscal year were approximately $73.7 million.

Key Findings

• District officials’ appropriation of fund balance in excess of the amount actually available to fund operations resulted in an unassigned fund balance deficit of $1.5 million as of June 30, 2011.
• District officials addressed this situation by implementing reductions to budgeted expenditures in the 2011-12 fiscal year. The District’s latest annual report shows the deficit was eliminated as of June 30, 2012.

Key Recommendations

• Adopt a comprehensive fund balance policy that clearly communicates to the District taxpayers the Board’s decision on the appropriate level of fund balance to maintain, and the purpose and intent for establishing each reserve fund, the manner in which the Board will fund and maintain each reserve fund, the optimal or targeted funding levels for each reserve fund, and the conditions under which the Board will use or replenish the assets in each reserve.
• Continue to closely monitor the District’s use of fund balance to ensure that action is taken, if necessary, to identify other funding sources that can be used if fund balance is no longer available to fund District operations.