Purpose of Audit

The purpose of our audit was to examine the District’s financial condition for the period July 1, 2012 through September 3, 2014.

Background

The Mount Morris Central School District is located in the Village of Mount Morris and the Towns of Mount Morris, West Sparta, Leicester and Groveland, in Livingston County, and is governed by an elected seven-member Board of Education. The District operates one school with approximately 525 students. Budgeted appropriations for the 2014-15 fiscal year total approximately $13.9 million.

Key Findings

• District officials have relied on the use of fund balance and reserves to close budget gaps, which has negatively affected the District’s financial positon.
• The Board and Superintendent did not adequately explain or monitor the implementation of the approved budget plan.
• The business administrator and external auditor moved $160,544 from the unemployment insurance reserve to cover the amount not available in unrestricted fund balance.

Key Recommendations

• Carefully review and amend budgeting practices to avoid over-reliance on the appropriation of fund balance and reserves to balance future budgets.
• More closely monitor the implementation of the adopted budget and its progress, against operating results, throughout the year and address any significant variances in a timely manner.
• Return moneys improperly transferred from the unemployment insurance reserve fund.