Purpose of Audit

The purpose of our audit was to evaluate the District’s financial management for the period July 1, 2014 through June 30, 2016.

Background

The Sodus Central School District is located in the Towns Arcadia and Sodus, Wayne County. The District, which operates three schools with approximately 1,050 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2016-17 fiscal year total approximately $27.5 million.

Key Findings

• For fiscal years 2012-13 through 2015-16, operations resulted in 84 percent of appropriated fund balance remaining unused because of overestimated expenditures.
• The District does not have a written plan detailing the appropriate and necessary levels for reserve funds and how they are to be monitored, analyzed and maintained.
• The District does not have a long-term financial plan for both capital projects and operating expenses.

Key Recommendations

• Discontinue the practice of adopting budgets that result in the appropriation of fund balance and reserve funds that will not be used.
• Adopt an adequate reserve plan which includes the District’s intentions for the long-term accumulation and use of reserve funds.
• Develop a comprehensive multiyear financial plan to establish objectives for funding long-term needs.