Purpose of Audit

The purposes of our audit were to evaluate the District’s financial management and calculation of separation payments for the period July 1, 2012 through October 30, 2015.

Background

The Rush-Henrietta Central School District is located in the Towns of Brighton, Henrietta, Pittsford and Rush in Monroe County. The District, which operates nine schools with approximately 5,300 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $112.5 million.

Key Findings

• The Board did not adopt realistic budgets based on historical or known trends.
• Two of the District’s six general fund reserves, which had balances totaling more than $4 million as of June 30, 2015, are overfunded or potentially unnecessary.
• District officials have not developed written policies or procedures to formalize the process for calculating, reviewing, approving and making separation payments.

Key Recommendations

• Develop and adopt budgets that reflect the District’s actual needs and plans and include realistic estimates for revenues, expenditures and fund balance use based on historical trends and other identified analysis.
• Review the reserves to determine if the amounts reserved are necessary and document support to justify the targeted funding levels. If deemed necessary, the Board should research the origin of the existing unemployment reserve and if unable to determine the origin of the reserve, reestablish the reserve in conformance with General Municipal Law. To the extent that they are not necessary, transfers should be made to other reserves established and maintained in compliance with statutory directives or used to benefit the District.
• Develop procedures to govern separation payments to ensure they are consistent with the terms and conditions of CBAs.