Purpose of Audit

The purpose of our audit was to review the District’s management of financial activities for the period July 1, 2012 through April 8, 2016.

Background

The Whitesville Central School District is located in the Towns of Independence and Willing in Allegany County and the Town of West Union in Steuben County. The District, which operates one school with approximately 260 students, is governed by an elected five-member Board of Education. General fund budgeted appropriations for the 2015-16 fiscal year totaled approximately $6.7 million.

Key Findings

• Because District officials significantly overestimated appropriations, appropriated fund balance was not actually used to finance operations.
• As of June 30, 2015, the District’s unrestricted fund balance totaled more than $1.3 million and was 20 percent of the 2015-16 budgeted appropriations, exceeding the statutory limit by more than $1 million.

Key Recommendations

• Ensure that budgets include realistic estimates of appropriations based on actual needs and that estimates for the planned use of fund balance are accurate and reasonable.
• Maintain unrestricted fund balance within the statutory limit and develop a plan to reduce unrestricted fund balance in a manner that benefits District residents.