Jefferson Central School District – Fund Balances (2015M-236)

Issued Date
January 15, 2016

Purpose of Audit

The purpose of our audit was to evaluate the District’s financial condition for the period July 1, 2014 through August 6, 2015.

Background

The Jefferson Central School District is located in the Delaware and Schoharie County Towns of Harpersfield, Kortright, Blenheim, Gilboa, Jefferson and Summit. The District, which operates one school with approximately 250 students, is governed by an elected five-member Board of Education. General fund budgeted appropriations for the 2015-16 fiscal year total $6.4 million.

Key Findings

  • Reserve balances accumulated to significant levels because District officials were historically transferring funds to them without using them; District officials do not have long-term plans for reserve balance levels or usage.
  • The reserves for retirement contributions, compensated absences and unemployment insurance, with balances totaling $592,843, appeared to be overfunded when compared to the amounts necessary for their stated purposes.

Key Recommendations

  • Establish formal spending levels and long-term plans for the District’s unrestricted fund balance and reserves.
  • Review all reserve balances and transfer excess funds to unrestricted fund balance, where allowed by law, or use the reserve funds for their designated purposes.