School District Governance and Fund Balance: An Examination of Overtaxing

• In Event: Government and Not-for-Profit 1

Abstract

This study examines factors that impact the change in fund balance of school districts. Fund balance represents monies taxed in advance of property owners and not yet appropriated for expenditure use by the school board. The factors examined include the budget surplus created by under-budgeted revenues, over-budgeted expenditures, and governance structures of the school district. The governance structures include use of budget committees, audit committee structure and board of education expertise. The results show that over-budgeted expenditures increase fund balance. Governance characteristics, such has the use of budget committees, CPAs on the board of education, and outside members on the audit committee reduce the increase in fund balance.
 

Authors

• Cynthia R. Phillips, St. John's University

• Nina T Dorata, St. John's University