Purpose of Audit

The purpose of our audit was to examine the District’s reserve funds and selected financial management practices for the period July 1, 2008 through March 25, 2014.

Background

The Medina Central School District is located in the Towns of Shelby and Ridgeway in Orleans County and is governed by an elected nine-member Board of Education. The District operates three schools with an enrollment of approximately 1,750 students. Budgeted appropriations for the 2013-14 fiscal year totaled approximately $33.8 million.

Key Findings

• Certain reserve funds do not adhere to statutory requirements and certain reserve funds have excessive balances.
• The Board underestimated revenues and overestimated expenditures by a total of approximately $14.7 million for the five fiscal years ending June 30, 2013.

Key Recommendations

• Establish a reserve fund policy and ensure that reserves are reasonably funded.
• Develop realistic revenue and expenditure estimates for the annual budget and monitor financial activity to ensure that operations closely mirror the budget.