Purpose of Audit

The purpose of our audit was to evaluate the District’s management of financial activities for the period July 1, 2011 through March 27, 2015.

Background

The Cuba-Rushford Central School District is located in the Towns of Belfast, Caneadea, Centerville, Clarksville, Cuba, Friendship, New Hudson and Rushford in Allegany County and the Towns of Farmersville, Freedom, Hinsdale, Ischua and Lyndon in Cattaraugus County. The District, which operates two schools with approximately 850 students, is governed by an elected seven-member Board of Education. General fund budgeted appropriations for the 2014-15 fiscal year totaled approximately $21 million.

Key Findings

• District officials overestimated expenditures by approximately $8.5 million throughout the audit period.
• Unrestricted fund balance annually exceeded statutory limits.
• Reserves are overfunded by approximately $3.2 million.

Key Recommendations

• Adopt budgets that include realistic expenditure estimates of actual needs so as not to overtax District taxpayers.
• Ensure that unrestricted fund balance is within statutory limits.
• Review the reserves’ balances at least annually and transfer overfunded amounts to unrestricted fund balance or other reserves as per statutory requirements.