Purpose of Audit

The purpose of our audit was to evaluate the District’s financial condition for the period July 1, 2012 through September 30, 2013.

Background

The Amagansett Union Free School District is located in the Town of East Hampton in Suffolk County and is governed by an elected five-member Board of Education. The District operates one school with 108 students attending kindergarten through grade six and pays tuition for 75 students in grades 7 through 12 who attend school in other districts. Budgeted appropriations for the 2013-14 fiscal year totaled approximately $10.2 million.

Key Findings

• District officials underestimated revenues and overestimated appropriations for the budgets for fiscal years 2009-10 through 2012-13.
• The District has accumulated unexpended surplus funds of up to two times the amount allowed by statute.
• Two of the District’s reserve funds had excessive balances and no formal plan for funding or using the reserves.

Key Recommendations

• Develop and adopt budgets that include realistic estimates for revenues and appropriations.
• Ensure that unexpended surplus fund amounts are within statutory limits.
• Develop a formal plan for reserve funds.