Purpose of Audit

The purpose of our audit was to evaluate the District’s financial condition for the period July 1, 2014 through November 30, 2015.

Background

The Sharon Springs Central School District is located in the Towns of Carlisle, Seward and Sharon in Schoharie County, the Towns of Cherry Valley and Roseboom in Otsego County and the Towns of Canajoharie and Root in Montgomery County. The District, which operates one school with approximately 300 students, is governed by an elected five-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $9.3 million.

Key Findings

• The District appropriated more fund balance than was needed in the adopted budgets for the three-year period ending June 30, 2015.
• Unrestricted fund balance exceeded the statutory limit each of the past three fiscal years.

Key Recommendations

• Adopt more accurate budget estimates for revenues and appropriations, this discontinuing the practice of adopting budgets that appropriate unexpended surplus funds that will not be used.
• Develop a plan to use the surplus fund balance in a manner that benefits District residents.