Purpose of Audit

The purpose of our audit was to evaluate the District’s budgeting practices for the period July 1, 2010 through December 16, 2015.

Background

The Albion Central District is located in in the Towns of Albion, Barre, Carlton, Gaines, Kendall, Murray and Ridgeway in Orleans County and the Town of Elba in Genesee County. The District, which operates three schools with approximately 1,880 students, is governed by an elected nine-member Board of Education. The District’s operating budget for the 2015-16 fiscal year totaled approximately $33 million.

Key Findings

• While the District appropriated fund balance to help finance operations, it was not needed because the District’s budgeting practices regularly produced significant operating surpluses.
• The District’s retirement contribution reserve and unemployment insurance reserve were overfunded.

Key Recommendations

• Develop realistic estimates of revenues, appropriations and the use of fund balance in the annual budget.
• Comply with the District’s reserve fund policy and use the excess amounts in reserve funds, in accordance with applicable statutory provisions, in a manner that benefits residents.