Purpose of Audit

The purpose of our audit was to examine the District’s financial management practices for the period July 1, 2014 through May 24, 2016.

Background

The Jericho Union Free School District is located in the Towns of Oyster Bay and North Hempstead, Nassau County. The District operates five schools with approximately 3,000 students and is governed by an elected five-member Board of Education. Budgeted appropriations for the 2016-17 fiscal year were approximately $121 million.

Key Findings

• The Board and District officials overestimated budgeted appropriations by 9 to 12 percent– ranging from $9.8 to $12.4 million – for three of the four years in our audit period (2012-13 through 2014-15).
• The District's debt service fund had a balance of $1.1 million as of June 30, 2016, and the District maintained an average balance of $1.1 million in this fund over the past four fiscal years. However, the District budgeted for and paid the debt-related principal and interest from the general fund each year.
• The funding level for the retirement contribution reserve appears unreasonable based on current use.

Key Recommendations

• Adopt budgets that realistically reflect the District’s operating needs based on historical expenditure trends or other identified analysis.
• Use the debt service fund money to make debt service payments in accordance with the District’s adopted debt service plan.
• Review the District’s reserve fund policy and ensure that the funding levels for the retirement contribution reserve are reasonable, and take appropriate action, in accordance with statute, to reduce excess funds.