Purpose of Audit

The purpose of our audit was to evaluate the District’s financial condition for the period July 1, 2013 through March 31, 2015.

Background

The Rocky Point Union Free School District is located in the Town of Brookhaven, Suffolk County. The District, which operates four schools with approximately 3,240 students, is governed by an elected five-member Board of Education. General fund budgeted appropriations for the 2014-15 fiscal year were approximately $76.9 million.

Key Findings

• District officials employed budgeting practices that generated operating surpluses while appropriating unneeded fund balance.
• District officials have not established a formal plan stating how much would be set aside in each reserve fund, how each reserve would be funded or when reserve funds would be used.
• Amounts retained in two of the District’s reserves were excessive.

Key Recommendations

• Adopt realistic appropriations estimates in the District’s budgets.
• Develop comprehensive policies for establishing and using reserve funds.
• Develop a plan for the use of excess fund balance and reserve funds in a manner that benefits District taxpayers.