Purpose of Audit

The purpose of our audit was to determine if the Board adopted realistic budgets and properly managed fund balance and reserves and if District officials properly managed extra-classroom activity funds for the period July 1, 2014 through August 31, 2015.

Background

The Canajoharie Central School District is located in the Towns of Canajoharie, Charleston, Minden, Mohawk, Palatine and Root in Montgomery County and the Towns of Carlisle and Sharon in Schoharie County. The District, which operates three schools with approximately 985 students, is governed by an elected five-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $21 million.

Key Findings

• The 2012-13, 2013-14 and 2014-15 adopted budgets overestimated appropriations by a total of $3.2 million (5 percent) over these years.
• The District’s retirement contribution reserve was overfunded by more than $445,000 (33 percent) as of June 30, 2015.
• The District’s unrestricted fund balance has been in excess of the limits established by New York State Real Property Tax Law, ranging from 6.9 percent to 8.3 percent of the ensuing year’s appropriations.
• Duplicate press-numbered receipts or sales reports were not remitted to the central treasurer and adequate profit and loss statements showing fundraising profitability were not completed.
• Student treasurers did not maintain independent ledgers documenting collections and disbursements.

Key Recommendations

• Adopt budgets with realistic estimates for expenditures to finance operations.
• Ensure the balance retained in the District’s retirement contribution reserve is reasonable.
• Reduce excess fund balance to stay within the legal limits.
• Ensure that the central treasurer receives supporting documentation for all activity fund cash receipts that are remitted to her for deposit and that student treasurers complete profit and loss statements in a timely manner to determine the profitability of all fundraising activities.
• Ensure that student treasurers maintain independent ledgers showing all receipts and disbursements.