Yorkshire-Pioneer Central School District – Financial Management (2015M-352)

Issued Date
April 15, 2016

Purpose of Audit

The purpose of our audit was to review the District’s management of financial activities for the period July 1, 2012 through October 13, 2015.

Background

The Yorkshire-Pioneer Central School District is located in the Towns of Arcade, Eagle, Java, Sheldon and Wethersfield in Wyoming County; Farmersville, Freedom, Machias and Yorkshire in Cattaraugus County; Holland and Sardinia in Erie County; and Centerville in Allegany County. The District, which operates four schools with approximately 2,500 students, is governed by an elected nine-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $52.8 million.

Key Findings

  • Although District officials annually appropriated a portion of fund balance, including reserve fund balance, toward subsequent years’ budgets, the full amount appropriated was not needed because the District’s budgeting practices generally resulted in operating surpluses.
  • As of June 30, 2015, unrestricted fund balance was more than 10 percent of the ensuing year’s budget, or approximately $3 million over the legal limit.
  • The District did not have a Board-adopted policy to communicate the purpose of its reserve funds, optimal funding levels and conditions under which the funds will be used or replenished.

Key Recommendations

  • Develop realistic estimates of revenues and expenditures and the use of fund balance in the annual budgets.
  • Ensure that unrestricted fund balance is in compliance with statutory limits and develop a plan to reduce unrestricted fund balance in a manner that benefits District taxpayers.
  • Develop a written reserve fund policy.