Hoosick Falls Central School District - Financial Condition Management (2019M-159)

Issued Date
December 06, 2019

[read complete report - pdf]

Audit Objective

Determine whether District officials effectively managed the District’s financial condition.

Key Findings

  • The Board authorized fiscal year-end interfund transfers totaling $1.2 million to be used for a capital project which had not yet been approved by District voters.
  • District officials overestimated appropriations from 2015-16 through 2018-19. We project appropriations were estimated more reasonably in 2019-20 but certain account lines continued to be overestimated.
  • Unrestricted fund balance ranged between 5.9 and 9.8 percent of ensuing years’ appropriations, exceeding the 4 percent statutory limit.

Key Recommendations

  • Discontinue the practice of reducing unrestricted fund balance by making un-budgeted year-end interfund transfers.
  • Develop realistic estimates of appropriations.
  • Adopt a written plan to use excess fund balance to benefit District taxpayers.

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