Erie 1 Board of Cooperative Educational Services – Special Aid Fund (2016M-188)

Issued Date
November 04, 2016

Purpose of Audit

The purpose of our audit was to evaluate the financial activity in BOCES’ special aid fund for the period July 1, 2013 through February 29, 2016.


The Erie 1 Board of Cooperative Educational Services is a public entity serving 19 component school districts. BOCES, which provides more than 1,400 educational and administrative programs to its 19 component and other participating school districts, is governed by a seven-member Board of Education elected by the boards of the component districts. For the 2014-15 fiscal year, reported expenditures from the special aid fund, which is used to account for and report programs supported in whole or in part by specific revenue sources, totaled approximately $19.3 million.

Key Findings

  • The summer school program had an outstanding surplus in the special aid fund of $3.4 million.
  • BOCES did not enter into intermunicipal agreements with its component districts for the operation of adult and continuing education programs.
  • During the 2013-14 and 2014-15 fiscal years, 22 of the 23 adult education programs realized an operating surplus.

Key Recommendations

  • Return surplus funds from the summer school program to component and participating school districts on a timely basis.
  • Enter into intermunicipal agreements with component districts for self-sustaining adult education programs.
  • Contact the State Education Department for guidance regarding the proper disposition of surplus funds generated from adult education programs and for establishing appropriate tuition rates.