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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Palmyra-Macedon Central School District – Reserves and Fund Balance (2015M-336)


Released: June 3, 2016 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to review the District’s fund balance and reserves for the period July 1, 2014 through October 23, 2015.

Background

The Palmyra-Macedon Central School District is located in the Towns of Palmyra, Macedon and Walworth in Wayne County and Farmington and Manchester in Ontario County. The District, which operates four schools with approximately 1,900 students, is governed by an elected nine-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year were $36.9 million.

Key Findings

  • As of June 30, 2015, the District had an account for post-employment benefit liabilities totaling over $7.1 million when there is currently no authority to reserve funds for this purpose and District officials could not provide documentation for the establishment of its unemployment reserve fund.
  • The Board adopted budgets that included plans to use appropriated fund balance totaling $2.43 million from 2012-13 through 2014-15. Instead, 67 percent of the appropriated fund balance totaling $1.62 million went unused.
  • Three of the District’s reserves may be excessively funded.

Key Recommendations

  • Ensure that funds in unauthorized reserves are properly classified as unrestricted fund balance.
  • Adopt budgets with realistic estimates of appropriations and appropriated fund balance.
  • Review all reserves currently established and determine if the balances are necessary, reasonable and in compliance with statutory requirements. To the extent that they are not necessary, transfers should be made to other reserves established and maintained in compliance with statutory directives or used to benefit taxpayers.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236