Shoreham-Wading River Central School District – Financial Management (2017M-75)

Issued Date
June 16, 2017

Purpose of Audit

The purpose of our audit was to review the District’s financial condition for the period July 1, 2013 through December 31, 2016.

Background

The Shoreham-Wading River Central School District is located in the Towns of Brookhaven and Riverhead, Suffolk County. The District, which is governed by an elected seven-member Board of Education, operates five schools with approximately 2,250 students. Budgeted appropriations for the 2016-17 fiscal year total approximately $72.7 million.

Key Findings

  • The Board has not adopted budgets with reasonable expenditure and fund balance appropriations.
  • The Board appropriated fund balance and reserves that it did not actually need to fund operations.
  • The District’s unassigned fund balance was nearly 11 percent of the ensuing year’s appropriations, exceeding the statutory limit by almost 7 percentage points.

Key Recommendations

  • Develop realistic estimates of appropriations and the use of fund balance in the annual budget.
  • Discontinue the practice of adopting budgets that result in the appropriation of unassigned fund balance and reserves that are not needed to fund District operations.
  • Use surplus fund balance in a manner that benefits District residents.