Purpose of Audit

The purpose of our audit was to examine the District’s financial condition for the period July 1, 2014 through December 10, 2015.

Background

The Garrison Union Free Central School District is located in the Town of Philipstown, Putnam County. The District, which operates one school with approximately 300 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $10.2 million.

Key Findings

• The District overestimated appropriations in the adopted budgets from 2010-11 through 2014-15.
• Unrestricted fund balance averaged almost 30 percent during the same period, which exceeded the 4 percent legal limit.
• District officials retained excessive balances in four reserve funds.

Key Recommendations

• Adopt budgets with realistic estimates of appropriations.
• Ensure that the District’s unrestricted fund balance is in compliance with statutory limits and reduce the amount of fund balance in a manner than benefits District residents.
• Review reserve funds to determine if the amounts reserved are justified, necessary and reasonable, and reduce those that are not.