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Audit Objective

Determine whether the Ripley Central School District (District) Board of Education (Board) and District officials properly managed fund balance in accordance with statute.

Key Findings

The Board and District officials did not properly manage fund balance in accordance with statute.

The Board and District officials:

• Overestimated budgetary appropriations and appropriated fund balance, resulting in surplus fund balance exceeding the 4 percent statutory limit by approximately $1.4 million, or 15 percentage points.
• Did not develop and adopt a comprehensive written multiyear financial plan and did not adhere to the fund balance policy.

Key Recommendations

• Adopt budgets that include reasonable estimates for appropriations and the amount of appropriated fund balance that will be used to fund operations.
• Develop and adopt a comprehensive written multiyear financial plan and adhere to the fund balance policy.

District officials generally agreed with our findings and indicated they have initiated or will initiate corrective action.