Purpose of Audit

The purpose of our audit was to examine the District’s financial condition for the period July 1, 2012 through January 28, 2014.

Background

The Richfield Springs Central School District resides in two towns in Herkimer County and four towns in Otsego County. The District, which is governed by an elected five-member Board of Education, operates one educational facility with approximately 500 students. Budgeted appropriations for the 2013-14 fiscal year totaled approximately $11.5 million.

Key Findings

• The District did not always maintain reasonable fund balances.
• The District has accumulated excessive balances in reserve funds that can be used to offset budgetary shortfalls in the near term.

Key Recommendations

• Continue to monitor the availability of fund balance to finance operations and seek alternative financing sources where available.
• Review all reserve balances to determine the amounts that can be used to fund operations and the balances that should be kept in reserve.