Purpose of Audit

The purpose of our audit was to review the District’s financial condition for the period July 1, 2012 through November 30, 2015.

Background

The Town of Webb Union Free School District is located in the Town of Webb in Herkimer County and the Town of Forestport in Oneida County. The District, which operates one school with approximately 270 students, is governed by an elected five-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year totaled $8.8 million.

Key Findings

• District officials did not ensure that the District’s unrestricted fund balance was within the statutory limit during the past three fiscal years.
• The Board adopted unrealistic budgets that included appropriated fund balance totaling approximately $3.3 million that was not actually used to finance operations. As a result the District’s fund balance has become excessive and District officials may have levied more taxes than necessary to sustain District operations.

Key Recommendations

• Develop a plan to reduce the amount of unrestricted fund balance in a manner that benefits District taxpayers.
• Develop realistic budgeted appropriations based on prior year’s results and anticipated operations to avoid raising more real property taxes than necessary.