Purpose of Audit

The purpose of our audit was to determine whether the Board adequately managed District finances by adopting realistic budgets and developing and implementing a long-term financial plan, and whether District officials adequately safeguarded fuel inventories and maintained accurate and complete records for the period July 1, 2016 through July 31, 2017.

Background

The Oppenheim-Ephratah-St. Johnsville Central School District is located in the towns of Oppenheim, Ephratah, Johnstown and Stratford in Fulton County, the Town of Manheim in Herkimer County and the Town of St. Johnsville in Montgomery County. The District, which is governed by a seven-member Board of Education, has approximately 750 students. Budgeted appropriations for the 2017-18 fiscal year total approximately $18.6 million.

Key Findings

• The 2014-15 through 2016-17 budgets did not contain realistic estimates of appropriations.
• The District maintained fund balance in excess of the 4 percent statutory limit.
• The District used 973 more gallons of unleaded fuel and 341 more gallons of diesel fuel than it accounted for.

Key Recommendations

• District officials should ensure that all budget estimates are reasonable.
• Reduce unrestricted fund balance to an amount permitted by law.
• The Transportation Supervisor should maintain accurate and complete fuel inventory records and should thoroughly investigate variances between fuel records and tank readings.