Purpose of Audit

The purpose of our audit was to examine the District’s financial condition for the period of July 1, 2011 through October 2, 2013.

Background

The Fallsburg Central School District is located in the Towns of Fallsburg, Mamakating and Thompson in Sullivan County and the Town of Wawarsing in Ulster County. The District is governed by an elected nine-member Board of Education and operates two schools, with approximately 1,490 students. Budgeted appropriations for the 2013-14 fiscal year are approximately $37 million.

Key Findings

• The District adopted budgets that included plans to use fund balance which mostly went unused and has overestimated expenditures.
• Unrestricted fund balance has consistently exceeded the legal limit of 4 percent of subsequent years’ budgeted appropriations.
• The District has withheld significant funds from productive use and levied taxes that were higher than necessary.

Key Recommendations

• Appropriate only the amount of surplus funds from one year that will actually be needed in the next year’s budget and develop appropriation estimates that are realistic.
• Develop a plan to reduce the amount of fund balance in a manner that benefits District taxpayers.
• Provide appropriate transparency through the budget process.