[read complete report here - pdf]

Audit Objective

Determine whether the Stamford Central School District (District) Board of Education (Board) and officials effectively managed fund balance.

Key Findings

The Board and District officials did not effectively manage the District’s fund balance. As a result, they were not transparent with taxpayers, and the District levied more taxes than needed to fund operations.

• The Board overestimated appropriations from the 2019-20 through 2021-22 fiscal years by an average of $1.4 million (14 percent) and planned to use fund balance to cover operating deficits when the District realized operating surpluses.
• Surplus fund balance exceeded the 4 percent statutory limit in two of the last three fiscal years by approximately $700,000 (6.8 percentage points) and $1.9 million (18.7 percentage points).
• Four of the District’s 11 reserves were not reasonably funded, or used to pay related expenditures, during the last three fiscal years. For example, the retirement contributions for employees reserve balance of $602,749 was sufficient to cover expenditures for five years.

Key Recommendations

• Adopt realistic budgets and appropriate fund balance only when needed to fund operations.
• Reduce surplus fund balance to comply with the statutory limit, and use it in a manner that benefits taxpayers.
• Adopt a written reserve policy that establishes optimal or targeted funding levels.

District officials generally agreed with our recommendations and have initiated or indicated they planned to initiate corrective action. Appendix B includes our comment on an issue that was raised in the District’s response letter.