Audit Objective 

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

Key Findings 

The Board and District officials were not transparent with taxpayers and did not effectively manage fund balance and reserves. From the 2017-18 through 2021- 22 fiscal years: 

• The approved budgets made it appear as though the Board needed to appropriate fund balance and reserves and increase real property taxes by 13 percent to close projected budget gaps. However, the District incurred operating surpluses in each of those five years, totaling $20.9 million. 
• The Board overestimated appropriations by more than $30 million (8 percent) and underestimated revenues by a total of $8.7 million (4 percent). 
• Five reserves had unreasonably high balances totaling $24.5 million that were not needed or used in many years, and the debt reserve in the debt service fund had $700,000 in unidentified money that should be returned to the general fund. 
• The District did not have comprehensive written reserve reports or plans, or written multiyear financial and capital plans, inhibiting effective financial management. 

Key Recommendations 

• Adopt budgets that include reasonable estimates and reduce overfunded reserves. 
• Provide an adequate annual reserve report and adopt written multiyear financial and capital plans. 

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