Purpose of Audit

The purpose of our audit was to review the District’s financial condition for the period July 1, 2012 through May 31, 2016.

Background

The Hewlett-Woodmere Union Free School District is located in the Town of Hempstead, Nassau County. The District, which operates five schools with approximately 3,000 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year totaled approximately $113.6 million.

Key Findings

• The District’s budgeted appropriations were overestimated by $31.1 million (10.4 percent) from 2012-13 through 2014-15.
• Because the Board overestimated expenditures over the three-year period, the appropriated fund balance totaling $9.6 million was not used, resulting in the District’s unrestricted fund balance exceeding the statutory limit.
• The Board overfunded six of the District’s reserve funds by almost $30.5 million and did not have documentation establishing two reserves.

Key Recommendations

• Adopt general fund budgets that include realistic estimates for appropriations.
• Discontinue the practice of adopting budgets that result in the appropriation of unrestricted fund balance that is not needed to fund District operations.
• Ensure reserve funds are financed in accordance with District standards and use any excess funds identified to benefit District residents in accordance with statutory requirements.