Minerva Central School District – Financial Condition Management (2020M-60)

Issued Date
October 02, 2020

[read complete report - pdf]

Audit Objective

Determine whether District officials effectively managed the District’s financial condition.

Key Findings

District officials can do more to effectively manage the District’s financial condition.

  • District officials overestimated appropriations by a total of more than $2.1 million from 2016-17 through 2018-19 and annually appropriated fund balance that was not used to finance operations.
  • Unrestricted fund balance ranged between 18.5 and 31.1 percent of ensuing years’ appropriations, exceeding the 4 percent statutory limit, and the District’s last six independent audit reports contained a finding related to the District’s unrestricted fund balance being in excess of the statutory limit.
  • District officials did not develop a comprehensive multiyear financial plan.

Key Recommendations

  • Develop and adopt budgets that include reasonable estimates for appropriations and the amount of fund balance that will be used to fund operations.
  • Develop a plan to reduce surplus fund balance to comply with the statutory limit and use excess funds in a manner beneficial to taxpayers.
  • Develop a comprehensive multiyear financial plan.

District officials generally agreed with our recommendations and have initiated, or indicated they planned to initiate corrective action.