Purpose of Audit

The purpose of our audit was to review the District’s financial condition for the period July 1, 2014 through September 5, 2015.

Background

The Highland Falls - Fort Montgomery Central School District is located in the Town of Highlands in Orange County. The District, which operates three schools with approximately 900 students, is governed by an elected nine-member Board of Education. Total expenditures for the 2014-15 fiscal year total approximately $28 million.

Key Findings

• The District’s unassigned fund balance as of June 30, 2015 was about $2.8 million, exceeding the 4 percent statutory limit by almost $1.7 million.
• The Board has not established a policy for funding and using the reserves.

Key Recommendations

• Ensure the unassigned fund balance is in compliance with statutory limits.
• Develop a formal reserve fund policy that outlines targeted funding levels and the conditions under which the funds will be used.