Purpose of Audit

The purpose of our audit was to examine the District’s financial condition for the period July 1, 2012 through February 2, 2016.

Background

The Odessa-Montour Central School District is located in the Towns of Catherine, Cayuta, Dix, Hector and Montour in Schuyler County; the Towns of Van Etten and Veteran in Chemung County; and the Town of Enfield in Tompkins County. The District, which operates three schools with approximately 750 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year totaled approximately $15.5 million.

Key Findings

• The Board and District officials overestimated general fund appropriations when preparing and adopting budgets.
• The District’s unrestricted fund balance exceeded the statutory limit.
• The District does not have a policy or formal plan for its six reserves.
• The District did not develop and adopt an adequate multiyear plan that includes specific estimates for revenues, expenditures, reserves and use of debt service funds and fund balance.

Key Recommendations

• Adopt budgets that represent the District’s actual needs, based on available current information and historical data.
• Reduce the amount of unrestricted fund balance and use the excess funds in a manner that benefits District residents.
• Adopt a comprehensive reserve policy.
• Develop a multiyear financial plan to estimate the future costs of ongoing services based on past trends and the Board’s priorities and goals.