[read complete report – pdf]

Audit Objective

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

Key Findings

The Board and District officials did not effectively manage the District’s fund balance. As a result, they were not transparent with taxpayers and the District levied more taxes than needed to fund operations.

• The Board overestimated appropriations from fiscal years 2019-20 through 2021-22 by an average of $585,636, or 6 percent and appropriated fund balance that was not used.
• Surplus fund balance exceeded the 4 percent statutory limit in each of the last three fiscal years by 3.1 to 12.8 percentage points.
• Reserves totaling $2.4 million could cover expenditures for retirement contributions for at least nine years, workers’ compensation for 10 years and unemployment for 31 years.

Key Recommendations

• Adopt realistic budgets and appropriate fund balance only when needed to fund operations.
• Reduce surplus fund balance to comply with the statutory limit in a manner beneficial to taxpayers.
• Adopt a written reserve policy that establishes optimal or targeted funding levels.

District officials agreed with our recommendations and indicated they will initiate corrective action.