Purpose of Audit

The purpose of our audit was to determine whether District officials effectively managed fund balance for the period July 1, 2014 through June 30, 2017.

Background

The Schalmont Central School District serves the Towns of Rotterdam, Princetown and Duanesburg in Schenectady County, the Town of Guilderland in Albany County and the Town of Florida in Montgomery County. The Board of Education is responsible for managing the District’s financial and educational affairs. The District has approximately 1,800 students, and 2016-17 budgeted appropriations totaled approximately $46.6 million.

Key Findings

• Unrestricted fund balance exceeded the statutory limit at the end of the 2015-16 and 2016-17 fiscal year.
• The general fund’s reported results of operations and fund balance figures were inaccurate due to money being transferred to and accounted for in the general fund that should have been transferred to a debt service fund.

Key Recommendations

• Develop a plan to reduce the amount of unrestricted fund balance to the legal limit.
• Continue to monitor the capital fund, close completed projects and transfer any excess funds to the appropriate fund in a timely manner.