Purpose of Audit

The purpose of our audit was to evaluate the District’s financial condition for the period July 1, 2010 through June 6, 2014.

Background

The Lewiston-Porter Central School District is located in the Towns of Lewiston and Porter, Niagara County. The District is governed by an elected seven-member Board of Education and operates four schools with approximately 2,100 students. Budgeted appropriations for the 2014-15 fiscal year total approximately $41 million.

Key Findings

• The Board used fund balance as a financing source in the annual general fund budgets until it was nearly depleted.
• The District realized negative budget variances for revenues from fiscal years ending 2011 through 2013 and for expenditures over the last four fiscal years.
• The District improperly used two reserves to help fund general fund operations during the 2012-13 fiscal year.

Key Recommendations

• Reduce reliance on fund balance as a financing source in the annual budget.
• Closely monitor actual operating results to prevent unfavorable budget variances and further deterioration of unrestricted fund balance.
• Develop and adopt a reserve policy and ensure that reserves are properly used.