Sherrill City School District – Reserve Funds (2017M-247)

Issued Date
February 02, 2018

Purpose of Audit

The purpose of our audit was to determine whether the Board properly established reserve funds and maintained them at reasonable levels for the period July 1, 2015 through July 31, 2017.

Background

The Sherrill City School District is located in the Cities of Rome and Sherrill and the Towns of Kirkland, Verona, Vernon, Vienna and Westmoreland in Oneida County and the City of Oneida in Madison County. The District, which has approximately 1,880 students, is governed by a nine-member Board of Education. General fund budgeted appropriations for the 2017-18 fiscal year total approximately $36.6 million.

Key Findings

  • The Board has not adopted policies for any of its reserve funds other than its health insurance reserve.
  • The tax certiorari reserve is overfunded by $4.5 million.

Key Recommendations

  • Adopt policies for reserve funds other than the health insurance reserve that address the purpose of each reserve, optimal funding levels and conditions under which the reserves will be used.
  • Use the surplus funds in the tax certiorari reserve to fund one-time expenditures, fund needed reserves, pay off debt or reduce property taxes.