Purpose of Audit

The purpose of our audit was to review the District’s financial condition for the period July 1, 2014 through September 30, 2015.

Background

The Alexandria Central School District is located in the Towns of Alexandria, Orleans and Theresa in Jefferson County, and the Town of Hammond in St. Lawrence County. The District, which operates one school with approximately 575 students, is governed by an elected seven-member Board of Education. Budgeted general fund appropriations for the 2015-16 fiscal year total approximately $12.4 million.

Key Findings

• The Board continually overestimated appropriations for the last three years.
• Although the Board appropriated fund balance each year, the adopted budgets actually produced operating surpluses, and as a result, none of the appropriated fund balance was used.
• Unassigned fund balance exceeded statutory limits during the past three years.
• The District maintained reserve funds but had no plans for their use.

Key Recommendations

• Adopt budgets that represent the District’s actual needs, based on current information and historical data.
• Discontinue the practice of adopting budgets that result in the appropriation of fund balance that will not be used.
• Ensure that unassigned fund balance is in compliance with statutory limits.
• Develop a formal reserve fund policy that outlines targeted funding levels and the conditions under which the funds will be used.