Purpose of Audit

The purpose of our audit was to determine whether the Board and District officials ensured fund balances and reserves were reasonable for the period July 1, 2016 through June 30, 2017.

Background

The Marathon Central School District serves seven towns in Cortland County, two towns in Broome County and one town in Tioga County. Enrollment for 2016-17 was 686 students. Budgeted appropriations for the 2016-17 fiscal year totaled approximately $17.9 million.

Key Findings

• Unassigned fund balance exceeded the statutory limit each year for the past three years but decreased as a percentage of ensuing year’s appropriations by 2 percentage points (from 6.9 to 4.9 percent) as of June 30, 2017.
• The debt service fund, employee benefit accrued liability reserve and retirement contribution reserve were not used as budgeted and overfunded as of June 30, 2017.

Key Recommendations

• Adopt a fund balance policy that includes a plan for using the excess accumulated fund balance in a manner that benefits District residents.
• Adopt a formal plan for reserves, analyze all reserve balances to determine whether balances are necessary and reasonable, and use excess amounts in accordance with applicable statutes in a manner that benefits District residents.