New York State Comptroller Thomas P. DiNapol says a recent
audit of the financial management of Cuba-Rushford Central School District
raised some concerns. According to an audit summary, the district’s financial
reserve plan states that the district will reduce surplus fund balance as
recommended by Comptroller DiNapoli’s previous report and the board’s fund
balance policy states that it will strive to ensure that surplus fund balance
does not exceed 4 percent. Surplus fund balance continued to consistently
exceed the 4 percent limit by an annual average of 9 percentage points, or
approximately $2 million. The board and district officials consistently
overestimated appropriations and appropriated fund balance for planned
operating deficits that never occurred.
Key Recommendations
-Adopt budgets that include reasonable estimates for appropriations
and the amount of fund balance that will be used to fund operations.
-Reduce surplus fund balance to comply with the statutory
limit and use the excess funds in a manner more beneficial to taxpayers.
You can read the complete audit HERE.
The District response:
