Sidney Central School District - Financial Management (2019M-243)

Issued Date
March 13, 2020

[read complete report - pdf]

Audit Objective

Determine whether the Board and District officials properly managed fund balance.

Key Findings

  • As of June 30, 2019, the unemployment insurance reserve and tax certiorari reserve balances of $381,484 and $563,862, respectively, were excessive.
  • The District’s reported fund balances exceeded its statutory limit in all three fiscal years. After adding back unused appropriated fund balances each year and the excessive tax certiorari reserve balance as of June 30, 2019, the District’s recalculated surplus fund balance exceeded the statutory limit each of the last three fiscal years, ranging from 4.7 percentage points to 8.9 percentage points over the limit.
  • The Board and District officials did not develop multiyear financial plans or establish targeted funding levels for reserves.

Key Recommendations

  • Review reserve fund balances and reduce them to reasonable levels, as appropriate, in accordance with applicable statutes.
  • Reduce surplus fund balance in a manner that benefits District taxpayers.
  • Develop multiyear financial plans and establish optimal or targeted funding levels for reserves.

District officials generally agreed with our findings and recommendations and indicated they have taken, or planned to take, corrective action.