Medina Central School District - Reserve Funds (2019M-165)

Issued Date
January 03, 2020

[read complete report - pdf]

Audit Objective

Determine whether the Board and District officials effectively managed the District’s reserve funds.

Key Findings

  • District officials have not performed an analysis of the reserves, as the District’s reserve policy requires. As a result, they could not demonstrate the need to retain approximately $2.1 million in four reserves.
  • While not adopted in the Board’s meeting minutes, District officials have developed a plan to use $5.4 million from four general fund reserves for a purpose for which they were not established.

Key Recommendations

  • Review reserve funds to determine whether they are necessary and reasonably funded.
  • Ensure reserve funds are properly used.

District officials generally agreed with the findings and recommendations and indicated they would take corrective action. Appendix B includes our comments on issues raised in the District’s response.