[read complete report - pdf]

Audit Objective

Determine whether Laurens Central School District (District) officials:

• Effectively managed cafeteria operations.
• Properly managed reserves.

Key Findings

• The school lunch fund has stabilized operating losses and reduced dependence on general fund subsidies.
• The Board of Education (Board) has not:
  • Effectively managed reserve balances.
  • Adopted policies for general fund reserves.

Key Recommendations

• District officials should perform a cost-per-meal analysis and continue to identify potential efficiencies that will help ensure the school lunch fund is self-sufficient.
• The Board should:
  • Review the reserve balances and determine if the amounts are reasonable and necessary. If not, develop a plan to reduce the balances to appropriate levels.
  • Modify the guidelines for reserves to include desired balances and plans for use that are more specific to the actual needs of the District.

District officials generally agreed with our recommendations and have initiated or indicated they planned to initiate corrective action. Appendix B includes our comment on an issue that was raised in the District’s response letter.