Purpose of Audit

The purpose of our audit was to review the District’s financial condition for the period July 1, 2012 through February 28, 2015.

Background

The Glens Falls Common School District is located in the City of Glens Falls in Warren County. The District, which is governed by an elected three-member Board of Education, operates one school, with approximately 180 students. The District’s budgeted appropriations for the 2014-15 fiscal year total approximately $4.3 million.

Key Findings

• The Board did not adopt structurally balanced budgets that funded recurring expenditures with recurring revenues for the general fund for 2012-13, 2013-14 or 2014-15.
• The Board appropriated $154,860 of fund balance in its 2014-15 budget, causing the District’s unrestricted fund balance to decrease to $6,036, which was less than 1 percent of the 2014-15 budgeted appropriations.
• The Board and District officials did not develop a multiyear financial plan to address the use of restricted and unrestricted fund balance.

Key Recommendations

• Develop and adopt budgets that are structurally balanced and appropriate fund balance only in amounts that are necessary and reasonable.
• Monitor the District’s use of unrestricted fund balance and, if necessary, identify other funding sources that can be used if these moneys are no longer available to fund operations.
• Develop a comprehensive multiyear financial plan to establish long-term objectives for funding long-term needs.