Purpose of Audit

The purpose of our audit was to evaluate the District’s financial condition for the period July 1, 2014 through March 31, 2016.

Background

The Indian River Central School District is located in the Towns of Alexandria, Antwerp, Le Ray, Orleans, Pamelia, Philadelphia and Theresa in Jefferson County and the Town of Rossie in St. Lawrence County. The District, which operates eight schools with approximately 4,000 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year totaled approximately $87.3 million.

Key Findings

• The Board and District officials did not develop reasonable budgets or effectively manage the District’s financial condition to ensure that the general fund’s unrestricted fund balance was within the statutory limit.
• District officials improperly reported about $862,000 of unrestricted fund balance in the debt service fund.
• The District’s long-range financial plan does not show detailed projections and their effect on fund balance levels.

Key Recommendations

• Develop realistic estimates of revenues and appropriations and the use of fund balance in the annual budget.
• Return moneys improperly residing in the debt service fund to the general fund.
• Ensure the multiyear operational plan clearly shows revenue and expenditure trends and the effect on fund balance.