Odessa-Montour Central School District – Financial Condition (2016M-71)

Issued Date
July 15, 2016

Purpose of Audit

The purpose of our audit was to examine the District’s financial condition for the period July 1, 2012 through February 2, 2016.

Background

The Odessa-Montour Central School District is located in the Towns of Catherine, Cayuta, Dix, Hector and Montour in Schuyler County; the Towns of Van Etten and Veteran in Chemung County; and the Town of Enfield in Tompkins County. The District, which operates three schools with approximately 750 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year totaled approximately $15.5 million.

Key Findings

  • The Board and District officials overestimated general fund appropriations when preparing and adopting budgets.
  • The District’s unrestricted fund balance exceeded the statutory limit.
  • The District does not have a policy or formal plan for its six reserves.
  • The District did not develop and adopt an adequate multiyear plan that includes specific estimates for revenues, expenditures, reserves and use of debt service funds and fund balance.

Key Recommendations

  • Adopt budgets that represent the District’s actual needs, based on available current information and historical data.
  • Reduce the amount of unrestricted fund balance and use the excess funds in a manner that benefits District residents.
  • Adopt a comprehensive reserve policy.
  • Develop a multiyear financial plan to estimate the future costs of ongoing services based on past trends and the Board’s priorities and goals.