Purpose of Audit

The purpose of our audit was to evaluate reserve fund management practices and internal controls over extra-classroom activities for the period July 1, 2012 through February 4, 2014.

Background

The Genesee Valley Central School District is located in Allegany County and is governed by an elected seven-member Board of Education. The District currently operates one school with approximately 600 students and 130 employees. The District’s budgeted general fund expenditures for the 2013-14 fiscal year are approximately $13 million.

Key Findings

• For five of the District’s seven reserves, totaling more than $4.3 million, the District’s preliminary plan failed to include a clear and detailed rationale for maintaining the reserve, the detailed objectives of the reserve, needed funding levels, sources of funding and the conditions under which the reserve’s assets will be used or replenished.
• We found no significant exceptions with the District’s financial controls over Extra-Curricular Activities (ECAs). District officials have addressed the deficiencies previously identified by our office.

Key Recommendations

• Adopt and implement a comprehensive policy for establishing and using reserve funds that identifies its intentions for each reserve, optimal or targeted funding levels and the conditions under which reserve funds will be used or replenished. Review existing reserves, determine the amounts that are not necessary and reasonable, and develop a plan for using these amounts in a manner that benefits District taxpayers and complies with statutory requirements.
• There are no recommendations pertaining to ECAs in this report.