Purpose of Audit

The purpose of our audit was to examine the District’s financial activities for the period July 1, 2014 through October 31, 2015.

Background

The Herkimer Central School District is located in the Village of Herkimer in Herkimer County. The District, which has approximately 1,200 students, is governed by an elected seven-member Board of Education. The operating budget for the 2014-15 fiscal year totaled approximately $22 million.

Key Findings

• The Board did not adopt structurally balanced budgets or properly manage fund balance.
• The Board does not have a long-term plan in place but has hired a consultant to assist with long-term planning.

Key Recommendations

• Develop and adopt structurally balanced budgets, consider the amount of fund balance available to appropriate during budget development and work toward building a reasonable amount of unrestricted fund balance to address unanticipated needs.
• Develop and implement a multiyear financial plan.