Purpose of Audit

The purpose of our audit was to review the District’s financial condition for the period July 1, 2014 through August 31, 2015.

Background

The Babylon Union Free School District is located in the Town of Babylon, Suffolk County. The District, which operates three schools with approximately 2,000 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $48.8 million.

Key Findings

• Because the District consistently overestimated appropriations, it did not use 94 percent of appropriated fund balance, resulting in unrestricted fund balance that exceeds legal limits.
• The District did not have proper documentation for the establishment and use of three of its four reserve funds, and one fund was overfunded.

Key Recommendations

• Use the surplus unrestricted fund balance in a manner that benefits District residents, adopt reasonable budgets with realistic estimates and discontinue the practice of adopting budgets that result in the appropriation of fund balance not needed to fund District operations.
• Ensure that all reserve funds are properly established and are funded in accordance with District standards.