Iroquois Central School District - Financial Management (2018M-102)

Issued Date
August 17, 2018

[read complete report - pdf]

Audit Objective

Determine whether the Board and District officials properly managed fund balance and reserves.

Key Findings

  • Appropriations were overestimated by an annual average of $2.3 million. As a result, appropriated fund balance, which annually averaged $1.8 million, was not needed to finance operations.
  • The Board and District officials did not transparently budget to fund a capital reserve.
  • The Board did not review all reserves and District officials did not prepare an annual report of reserves, as required by the District’s policy.
  • The unemployment insurance reserve is overfunded ($604,000) and the debt reserve is improperly restricting $245,000.

Key Recommendations

  • Adopt budgets with realistic, transparent estimates of appropriations and appropriated fund balance.
  • Review all reserves to determine whether balances are necessary and reasonable, and use excess amounts in accordance with applicable statutes in a manner that benefits taxpayers.

District officials generally disagreed with our recommendations. Appendix B includes our comments on issues raised in the District’s response.