Purpose of Audit

The purpose of our audit was to examine the District’s financial condition for the period July 1, 2011 through June 30, 2015.

Background

The Minisink Valley Central School District is located in the Towns of Greenville, Minisink, Mount Hope and Wawayanda in Orange County and in parts of the Towns of Wallkill (Orange County) and Mamakating (Sullivan County). The District, which operates five schools with approximately 3,900 students, is governed by an elected nine-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $94 million.

Key Findings

• Because the District overestimated expenditures in its budgets, it realized operating surpluses of $10.5 million. Therefore, none of the appropriated fund balance was actually used and unrestricted funds significantly exceeded the statutory maximum of 4 percent of the ensuing year’s budget.
• District officials did not develop a plan to reduce the unreserved fund balance in the general fund to comply with the statutory limit.

Key Recommendations

• Develop realistic estimates of appropriations and the use of fund balance in the annual budget.
• Develop a plan for the use of the excess fund balance in a manner that benefits the District.