[read complete report – pdf]

Audit Objective

Determine whether the York Central School District (District) Board of Education (Board) and District officials effectively managed fund balance.

Key Findings

The Board and District officials did not effectively manage fund balance. As of June 30, 2021:

• The recalculated surplus fund balance exceeds the statutory limit by $1.1 million.
• District officials overestimated appropriations by $1.7 million and improperly encumbered $203,000.
• District officials improperly restricted more than $690,000 in the debt reserve fund and did not transparently fund reserves.
• The unemployment insurance reserve totaling more than $1 million is overfunded and may be enough to pay annual claims for 132 years.
• The District did not have a written multiyear financial plan and comprehensive capital plans.

As a result, more real property taxes were levied than was needed to fund operations.

Key Recommendations

• Comply with the surplus fund balance statutory limit and use the excess funds in a manner more beneficial to taxpayers.
• Properly use and reasonably fund reserve funds.
• Adopt comprehensive written multiyear financial and capital plans.

District officials generally disagreed with our findings and recommendations. Appendix B includes our comments on issues raised in the District’s response letter.