Purpose of Audit

The purpose of our audit was to determine whether the Board and District officials adopted reasonable budgets and adequately managed the District’s financial condition for the period July 1, 2015 through November 30, 2016.

Background

The Parishville-Hopkinton Central School District is located in the Towns of Hopkinton, Parishville, Potsdam and Stockholm in St Lawrence County and has approximately 430 students. The District is governed by a Board of Education. General fund budgeted appropriations for 2016-17 totaled approximately $11 million.

Key Findings

• The Board adopted budgets with estimated appropriations that exceeded actual expenditures by a total of $2.5 million, or an average of 8 percent, over fiscal years 2013-14 through 2015-16, which resulted in appropriated fund balance not being used.
• The Board did not adopt a reserve fund policy and some reserves are overfunded.
• District officials have not developed comprehensive multiyear financial or capital plans.

Key Recommendations

• Adopt budgets that include realistic estimates for expenditures.
• Develop a written policy that indicates the amount of funds to be reserved and how each reserve will be funded.
• Develop and adopt comprehensive multiyear financial and capital plans.