Geneva City School District - Reserves (2018M-51)

Issued Date
June 22, 2018

[read complete report - pdf]

Audit Objective

Determine whether the Board reasonably and transparently financed reserves.

Key Findings

  • The Board has not adopted a reserve policy.
  • The Board did not include provisions to fund reserves in its annual budgets.
  • Seven reserves with balances totaling $9.4 million (72 percent of total reserves) are overfunded by $7.8 million and potentially unnecessary.

Key Recommendations

  • The Board should adopt a reserve policy.
  • Appropriately budget to fund reserves.
  • Determine if the amounts reserved are necessary, reasonable and in compliance with statutory requirements.