Audits of Local Governments and School Districts
Monroe-Woodbury Central School District – Financial Activities (2011M-296)
Released: April 5, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to examine the District’s financial activities for the period July 1, 2010 to November 7, 2011.
The Monroe-Woodbury Central School District is located in Orange County. The District is governed by the Board of Education which comprises nine elected members. The District’s budgeted expenditures for the 2010-11 and 2011-12 fiscal years were approximately $148 million and $149 million, respectively.
- Over the last three years, District officials have consistently overestimated budgetary appropriations despite data they should have used to develop more accurate estimates. As a result, District officials generated over $13.6 million in operating surpluses which caused the accumulated fund balance to exceed the statutory maximum of 4 percent of the ensuing year’s budget.
- To reduce the fund balance, District officials transferred moneys to the District’s reserves, which caused the reserves to be overfunded by $6 million, in effect, circumventing the 4 percent limit. Furthermore, District officials did not include the transfers to the reserves in the budgets, and did not make financial information readily available to the public.
- Develop a plan to use the surplus fund balance identified in this report in a manner that benefits District taxpayers.
- Develop and adopt policies related to the establishment, funding and use of reserve funds to ensure that the amounts reserved are necessary, reasonable, and in compliance with statutory requirements.
Local Government and School Accountability Contact Information:
Phone: (518) 474-4037; Email: firstname.lastname@example.org
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236