Ontario-Seneca-Yates-Cayuga-Wayne Board of Cooperative Educational Services (BOCES) – Multiyear Planning and Software Management (2016M-249)

Issued Date
December 09, 2016

Purpose of Audit

The objective of our audit was to assess BOCES’ multiyear planning, including reserve funds, and software management for the period July 1, 2014 through July 5, 2016.


The Ontario-Seneca-Yates-Cayuga-Wayne Board of Cooperative Educational Services is a public entity created to provide shared educational programs and services to 25 component school districts. BOCES is governed by a nine-member Board of Education elected by the boards of the component districts. BOCES’ 2015-16 fiscal year budgeted appropriations were approximately $102.7 million.

Key Findings

  • BOCES officials did not adequately develop or use multiyear planning.
  • BOCES officials have not developed plans that adequately describe their intentions for accumulating, maintaining and using reserve funds.
  • BOCES officials established the retiree health insurance reserve without proper statutory authority.
  • Although a previous OSC audit indicated the retiree health insurance reserve was improper, BOCES officials did not take corrective action to return funds to the component and participating districts.

Key Recommendations

  • Develop and adopt a formal, documented multiyear financial plan for a three- to five-year period and continually update plans based on changes that have occurred since the time they were first developed.
  • Adopt a reserve plan that addresses the accumulation, use and maintenance of reserve funds.
  • Discontinue the retiree health insurance reserve, as this is not a statutorily authorized reserve.
  • Return excess reserve balances to the component school districts.