Purpose of Audit

The purpose of our audit was to examine the District’s reserve funds for the period July 1, 2014 through January 5, 2016.

Background

The Mount Markham Central School District is located in a number of towns in Herkimer, Madison, Oneida and Otsego Counties. The District, which operates three schools with approximately 1,055 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $24.4 million.

Key Findings

• The District did not have documentation to support that any of its reserves were formally established and did not have a written reserve policy.
• The Board did not maintain some of the District’s reserve funds at reasonable levels.

Key Recommendations

• Establish a reserve policy that communicates to residents why money is being set aside, the Board’s financial objectives for each reserve, optimal or targeted funding levels and conditions under which funds will be used.
• Review all reserves and determine if the balances are necessary, reasonable and in compliance with statutory requirements.