Purpose of Budget Review

The purpose of our budget review was to provide an independent evaluation of the District’s proposed budget for the 2015-16 fiscal year.

Background

The Eldred Central School District, located in Orange and Sullivan Counties, has a tentative budget for fiscal year 2015-16 of approximately $16.6 million.

Key Findings

• Except for the items noted, we found the significant revenue and expenditure projections are reasonable.
• The proposed budget of $5,783,942 for State aid is $274,899 higher than the State’s estimate of $5,509,043.
• The budgeted $1,930,000 for health insurance is $164,625 greater than the District’s supporting documentation.
• The proposed budget calls for appropriation of $529,483 in fund balance, which would reduce available fund balance to less than 2 percent of appropriations; and does not account for the probable return of $200,000 in building aid to the State Education Department.
• The proposed budget includes $9,845,752 in real property taxes, which complies with the tax cap limits established by law.

Key Recommendations

• Reevaluate the State aid revenues in the proposed budget and amend them to be more in line with the NYS preliminary estimate.
• Amend the proposed budget for health insurance appropriations to be in agreement with the supporting documentation.
• Make a provision for repayment of the building aid and continue to monitor the use of unexpended fund balance.