Purpose of Audit

The purpose of our audit was to examine the District’s financial condition for the period July 1, 2012 through June 9, 2016.

Background

The Red Creek Central School District is located in the Towns of Butler and Wolcott in Wayne County and the Towns of Victory, Conquest and Sterling in Cayuga County. The District, which operates three schools with approximately 920 students, is governed by an elected seven-member Board of Education. General fund budgeted appropriations for the 2016-17 fiscal year total approximately $20.8 million.

Key Findings

• For fiscal years 2013-14 through 2015-16, 71 percent of the appropriated fund balance remained unused because of overestimated expenditures.
• The District's reserve plan does not include the District's specific long-term intentions for the funding, use and maintenance of reserve funds, including a detailed analysis of the District’s projected future needs.
• The Board and District officials have not developed formal, written multiyear financial or capital plans.

Key Recommendations

• Discontinue the practice of adopting budgets that result in the appropriation of fund balance and reserve funds that will not be used.
• Adopt an adequate reserve plan which includes the District's intentions for the long-term accumulation and use of reserve funds.
• Develop and adopt comprehensive multiyear financial and capital plans.