Onondaga Central School District - Financial Condition Management and Fuel Records (2018M-181)

Issued Date
December 07, 2018

[read complete report - pdf]

Audit Objective

Determine whether the Board and District officials:

  • Effectively managed the District’s financial condition.
  • Ensured that the District’s fuel records were accurate and all fuel was accounted for.

Key Findings

  • The Board has maintained general fund unrestricted fund balance close to the 4 percent statutory limit.
  • Adopted budgets consistently overestimated appropriations due to conservative budget practices. As a result, the District experienced unplanned operating surpluses in two of the three completed fiscal years reviewed.
  • During the past two years, the District’s total fund balance increased by nearly $1.66 million, or 43 percent (from $3.88 million to $5.54 million). The District allocated most of this fund balance increase to its reserve (restricted) funds, which increased by $1.50 million, or 65 percent (from $2.31 million to $3.81 million).
  • Fuel inventory reconciliations were not documented or reviewed.

Key Recommendations

  • Closely monitor unrestricted fund balance and reserves to ensure balances remain reasonable.
  • Adopt annual budgets that contain realistic estimates for appropriations.
  • Ensure fuel inventory reconciliations are properly documented and reviewed.

District officials generally agreed with our recommendations and have initiated, or indicated that they planned to initiate, corrective action.