Mount Sinai Union Free School District - Financial Condition Management (2018M-34)

Issued Date
June 01, 2018

[read complete report - pdf]

Audit Objective

Determine whether the Board and District officials effectively managed general fund balance.

Key Findings

  • District officials overestimated expenditures by more than $7.5 million and underestimated revenues by $1.7 million from 2014-15 through 2016-17. The District generated operating surpluses each year, which resulted in appropriated fund balance not being used and total fund balance increasing from $12.4 million to $16.6 million (35 percent) for the period.
  • The District’s year-end unrestricted fund balance exceeded the 4 percent statutory limit during our audit period. It totaled $11.5 million at the end of 2016-17.

Key Recommendations

  • Develop and adopt budgets that include realistic estimates for revenues, expenditures and unrestricted fund balance.
  • Ensure that unrestricted fund balance complies with the statutory limit.

District officials generally agreed with our findings and recommendations and indicated they will take corrective action.