Purpose of Audit

The purpose of our audit was to evaluate the Board’s management of the District’s financial condition for the period July 1, 2012 through January 4, 2016.

Background

The Cattaraugus-Little Valley Central School District is located in the Towns of Dayton, East Otto, Leon, Little Valley, Mansfield, Napoli, New Albion, Otto and Persia, Cattaraugus County. The District, which operates one school with approximately 1,000 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $24.6 million.

Key Findings

• District officials overestimated appropriations of fund balance toward subsequent years’ budgets.
• The District’s unrestricted fund balance has consistently exceeded statutory limits.
• Two general fund reserves were overfunded.

Key Recommendations

• Develop realistic estimates of appropriations and the use of fund balance and reserves in the annual budget.
• Ensure that the District’s unassigned fund balance is in compliance with statutory limits and develop a plan to use excess funds in a manner than benefits District residents.
• Review all reserves at least annually to determine if the amounts reserved are necessary and reasonable.