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Audit Objective

Determine whether the Milford 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.

• As of June 30, 2021, surplus fund balance exceeded the 4 percent statutory limit by approximately $600,000, or 5.4 percentage points. When the projected unused appropriated fund balance of $720,000 is added back, the recalculated surplus fund balance exceeded the statutory limit by $1.3 million, or 11.9 percentage points.
• The Board and District officials did not develop and adopt a written multiyear financial plan or fund balance policy.

Key Recommendations

• Reduce surplus fund balance to comply with the statutory limit and use the excess funds in a manner beneficial to taxpayers.
• Develop and adopt a comprehensive written multiyear financial plan and fund balance policy.

District officials generally agreed with our recommendations and plan to initiate corrective action.