Orchard Park Central School District - Financial Management and Payroll (2018M-89)

Issued Date
August 17, 2018

[read complete report - pdf]

Audit Objective

Determine if the Board and District officials properly managed District finances by ensuring budget estimates, unrestricted fund balance and reserve fund balances were reasonable and the District accurately compensated employees.

Key Findings

  • The Board underestimated revenues, overestimated appropriations and appropriated fund balance that was not used. Also, the balances in three reserves were excessive.
  • Despite budgetary surpluses and excess fund balance, the Board increased the tax levy by a total of $4.4 million from 2014-15 to 2017-18.
  • Three teachers were paid stipends at rates not established by a collective bargaining agreement (CBA), employment contract or Board resolution and one teacher reviewed and approved her own time sheets.

Key Recommendations

  • Develop and adopt budgets that include realistic estimates for revenues, appropriations and fund balance that will be used to fund operations.
  • Adopt a more comprehensive reserve policy and review reserve fund balances to determine whether the amounts are necessary and reasonable.
  • Ensure that all payments, pay rates and stipends are paid at rates established by a CBA, employment contract or Board resolution.

District officials disagreed with certain aspects of our findings and recommendations, but indicated they planned to initiate some corrective action. Appendix B includes our comments on the issues raised in the District’s response letter.