Purpose of Audit

The purpose of our audit was to review the District’s financial condition for the period July 1, 2013 through September 30, 2015.

Background

The Van Hornesville-Owen D. Young Central School District is located in the Towns of Stark, Columbia, Danube, German Flats, Little Falls and Warren in Herkimer County, the Town of Minden in Montgomery County and the Town of Springfield in Otsego County. The District, which operates one school with approximately 200 students, is governed by an elected five-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $5.4 million.

Key Findings

• The District adopted budgets that projected planned operating deficits but instead experienced operating surpluses and did not use appropriated fund balance.
• The District has accumulated unrestricted fund balance that exceeds the statutory limit.

Key Recommendations

• Adopt budgets that reflect the District’s actual needs based on realistic estimates of revenues and appropriations, taking into account historical trends and all available information.
• Ensure that the District’s unrestricted fund balance is in compliance with statutory limits and develop a plan to reduce the amount of unrestricted fund balance in a manner that benefits District taxpayers.