Purpose of Audit

The purpose of our audit was to assess the District’s oversight of its financial operations for the period July 1, 2010 through June 30, 2013.

Background

The Brunswick Central School District is located in the Towns of Brunswick, Pittstown, Grafton, Schaghticoke and Poestenkill in Rensselaer County. The District is governed by an elected nine-member Board of Education. There are two schools in operation in the District, with approximately 1,200 students and 200 employees. Budgeted expenditures for the 2013-14 school year were approximately $21 million.

Key Findings

• Although the Board’s adopted budgets included the appropriation of fund balance during the 2010-11 through 2012-13 fiscal years, the District actually realized annual operating surpluses totaling $1.5 million in that period, therefore not actually using the fund balance to finance operations.
• The District’s reserves have grown from about $978,000 to more than $2.4 million in three years. District officials have not established a formal plan stating how much would be set aside in each reserve, how each reserve would be funded or when the balances would be used.

Key Recommendations

• Develop and adopt budgets that include realistic estimates for expenditures and discontinue the practice of adopting budgets that result in the appropriation of fund balance that will not be used.
• Review the appropriateness of the reserves and whether the balances of the reserves are reasonable.