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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Honeoye Falls-Lima Central School District – Financial Management and Competitive Procurement (2016M-124)


Released: August 26, 2016 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to evaluate the District’s financial management and procurement of goods and services for the period July 1, 2012 through February 11, 2016.

Background

The Honeoye Falls-Lima Central School District is located in the Towns of Mendon, Henrietta and Rush in Monroe County; the Towns of Avon, Lima, and Livonia in Livingston County; and the Towns of Victor, West Bloomfield and Richmond in Ontario County. The District, which operates four schools with approximately 2,300 students, is governed by an elected nine-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year totaled approximately $47.4 million.

Key Findings

  • The Board did not adopt budgets based on historical or known trends but overestimated expenditures from fiscal years 2012-13 through 2014-15, which generated more than $3.5 million in operating surpluses.
  • When adding back unused appropriated fund balance, the District’s unrestricted fund balance exceeded the statutory limit each year.
  • Two of the District’s six general fund reserves are overfunded or potentially unnecessary.
  • The Board did not adopt an adequate procurement policy.

Key Recommendations

  • Adopt budgets that reflect the district’s actual needs and include realistic estimates based on historical trends or other identified analysis.
  • Develop a plan to reduce the amount of unrestricted fund balance in a manner that benefits District residents.
  • Review all reserve balances and determine if the amounts reserved are necessary, reasonable and in compliance with statutory requirements. To the extent they are not, transfers should be made in compliance with statutory requirements.
  • Adopt detailed policies and procedures to address the procurement of goods and services that are not required by law to be competitively bid.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236