Purpose of Audit
The purpose of our audit was to review the District’s financial condition for the period July 1, 2013 through December 31, 2016.
The Shoreham-Wading River Central School District is located in the Towns of Brookhaven and Riverhead, Suffolk County. The District, which is governed by an elected seven-member Board of Education, operates five schools with approximately 2,250 students. Budgeted appropriations for the 2016-17 fiscal year total approximately $72.7 million.
- The Board has not adopted budgets with reasonable expenditure and fund balance appropriations.
- The Board appropriated fund balance and reserves that it did not actually need to fund operations.
- The District’s unassigned fund balance was nearly 11 percent of the ensuing year’s appropriations, exceeding the statutory limit by almost 7 percentage points.
- Develop realistic estimates of appropriations and the use of fund balance in the annual budget.
- Discontinue the practice of adopting budgets that result in the appropriation of unassigned fund balance and reserves that are not needed to fund District operations.
- Use surplus fund balance in a manner that benefits District residents.