Purpose of Audit

The purpose of our audit was to examine the District’s financial condition for the period July 1, 2014 through August 4, 2015.

Background

The Tuxedo Union Free School District is located in the Town of Tuxedo in Orange County. The District, which operates two schools with approximately 470 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $14.2 million.

Key Findings

• The adopted budget for 2015-16 is structurally imbalanced, accounts receivables and reported cash balances were overstated and reserve fund money was commingled with other funds.
• The Board and District officials did not develop a multiyear financial plan to address declining enrollment issues.

Key Recommendations

• Adopt structurally balanced budgets, not rely on one-time revenues, maintain reserves at reasonable levels and use realistic revenue projections.
• Establish a documented multiyear plan and review it annually for necessary adjustments.