Purpose of Audit

The purpose of our audit was to review the District’s financial management for the period July 1, 2010 through June 30, 2015.

Background

The Wallkill Central School District is located in the Towns of Newburgh, Montgomery, Gardiner, Plattekill and Shawangunk, Ulster County. The District, which operates five schools with approximately 3,000 students, is governed by an elected nine-member Board of Education. Budgeted appropriations for the 2014-15 fiscal year totaled approximately $69 million.

Key Finding

• From 2010-11 through 2014-15, the Board adopted budgets with excessive appropriations that resulted in operating surpluses each year and that appropriated fund balance each year that was not necessary.
• District officials overfunded reserves by $12.8 million as of June 30, 2015.
• Total fund balance exceeded statutory limits each year.

Key Recommendations

• Develop budget projections for appropriations that consider prior years’ financial results and only appropriate the amount of fund balance that is actually needed to cover expenditures.
• Review reserves to determine if the amounts reserved are justified, necessary and reasonable.
• Develop a plan to use the surplus fund balance in a manner that benefits District taxpayers.