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NYS Comptroller


Audits of Local Governments and School Districts

Report Highlights

Allegany-Limestone Central School District - Financial Management (2018M-129)

Released: August 31, 2018 -- [read complete report - pdf]

Audit Objective

Determine whether the Board and District officials effectively managed fund balance and reserves.

Key Findings

  • The Board’s budgeting practices included annually appropriating fund balance that was not used to finance operations and overestimating appropriations by $4.8 million (8 percent annual average) over a three-year period.
  • As of June 30, 2017, unrestricted fund balance totaled more than $2.2 million and was 10 percent of the 2017- 18 budgeted appropriations, exceeding the statutory limit by approximately $1.3 million or 6 percentage points.
  • Reserve funds are generally not being used1 and the retirement, repair and unemployment reserves are overfunded.

Key Recommendations

  • Adopt budgets that include reasonable estimates for appropriations and the amount of fund balance that will be used to fund operations.
  • Reduce unrestricted fund balance to within the statutory limit and use the excess funds in a manner more beneficial to taxpayers.
  • Review and fund reserve balances to reasonable levels in accordance with applicable statutes.

District officials agreed with our recommendations and have initiated or indicated they planned to initiate corrective action.


The Allegany-Limestone Central School District (District) serves the Towns of Allegany, Carrollton, Hinsdale, Humphrey and Olean in Cattaraugus County.

The District is governed by an elected nine-member Board of Education (Board). The Superintendent of Schools (Superintendent) is the District’s chief executive officer and is responsible for day-today management under the Board’s direction. The Board, Superintendent and Business Executive are responsible for developing the annual budget. The Business Executive is also responsible for the administration and supervision of financial activities.

Quick Facts
Employees 170
Number of Schools2
2017-18 Budget $23.1 million

Audit Period

July 1, 2014 through April 20, 2018

We expanded our audit scope period through June 6, 2018 to review the 2018-19 adopted budget.

1 With the exception of the debt and capital reserves

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email:
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236