Purpose of Audit

The objective of our audit was to assess the District’s financial condition for the period July 1, 2015 through August 31, 2016.

Background

The Hannibal Central School District is located in Cayuga and Oswego Counties. The District, which is governed by an elected seven-member Board of Education, operates three schools with approximately 1,400 students. Budgeted appropriations for the 2016-17 fiscal year total approximately $31.6 million.

Key Findings

• District officials overestimated operating expenditures in each of the last three fiscal years and appropriated nearly $5 million in fund balance, 97 percent of which was not needed to fund operations.
• The District’s unrestricted fund balance annually exceeded the statutory limit.
• The Board has not developed an effective multiyear financial or capital plan to define how reserves and unrestricted fund balance in the general and debt service funds will be used.

Key Recommendations

• Develop realistic estimates of appropriations and the use of fund balance in the annual budget.
• Ensure that the amount of the District’s fund balance is in compliance with statutory limits and reduce the amount of fund balance in a manner that benefits District residents.
• Develop comprehensive multiyear financial and capital plans.