Purpose of Audit

The purpose of our audit was to evaluate the District’s financial condition for the period July 1, 2012 through October 31, 2015.

Background

The North Babylon Union Free School District is located in the Town of Babylon, Suffolk County. The District, which operates seven schools with approximately 4,900 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $112 million.

Key Findings

• District officials employed budgeting practices resulting in fund balance appropriations that were not needed.
• The Board transferred funds to the District’s reserves without calculations or justifications for the funding levels in the reserves.
• The District maintained balances in two reserves that were excessive.

Key Recommendations

• Adopt budgets that represent the District’s actual needs.
• Ensure that reserve fund policies outline the need for established funding levels and the conditions under which the funds will be used or replenished.
• Review all reserves and determine if the amounts are necessary, reasonable and in compliance with statutory requirements.