Franklinville Central School District – Financial Management (2017M-49)

Issued Date
June 02, 2017

Purpose of Audit

The purpose of our audit was to review the District’s financial management practices for the period July 1, 2013 through February 8, 2017.

Background

The Franklinville Central School District is located in the Towns of Farmersville, Franklinville, Humphrey, Ischua, Lyndon and Machias in Cattaraugus County. The District, which is governed by an elected five-member Board of Education, operates two schools with approximately 690 students. General fund appropriations for the 2016-17 fiscal year total $18.2 million.

Key Findings

  • The District appropriated fund balance annually to help finance budgeted appropriations, but only a portion was actually used to finance operations.
  • The Board and District officials have allowed unrestricted fund balance to exceed the statutory limit for the past three fiscal years by an average of $2.1 million.
  • District officials allowed reserve balances to accumulate to excessive levels.

Key Recommendations

  • Ensure that budgets include realistic estimates of appropriations based on actual needs to avoid levying taxes at a level greater than needed.
  • Maintain unrestricted fund balance within the statutory limit.
  • Develop a comprehensive written policy or plan for establishing, funding and using reserve funds.