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NYS Comptroller


Audits of Local Governments and School Districts

Report Highlights

Iroquois Central School District - Financial Management (2018M-102)

Released: August 17, 2018 -- [read complete report - pdf]

Audit Objective

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

Key Findings

  • Appropriations were overestimated by an annual average of $2.3 million. As a result, appropriated fund balance, which annually averaged $1.8 million, was not needed to finance operations.
  • The Board and District officials did not transparently budget to fund a capital reserve.
  • The Board did not review all reserves and District officials did not prepare an annual report of reserves, as required by the District’s policy.
  • The unemployment insurance reserve is overfunded ($604,000) and the debt reserve is improperly restricting $245,000.

Key Recommendations

  • Adopt budgets with realistic, transparent estimates of appropriations and appropriated fund balance.
  • Review all reserves to determine whether balances are necessary and reasonable, and use excess amounts in accordance with applicable statutes in a manner that benefits taxpayers.

District officials generally disagreed with our recommendations. Appendix B includes our comments on issues raised in the District’s response.


The Iroquois Central School District (District) serves the Towns of Aurora, Elma, Lancaster, Marilla and Wales in Erie County and the Town of Bennington in Wyoming County.

An elected seven-member Board of Education (Board) is responsible for the general management and control of District financial and educational affairs. The Superintendent of Schools (Superintendent) is the chief executive officer and is responsible, along with other administrative staff, for the District’s day-today management under the Board’s direction. The Business Administrator oversees the District’s business operations.

Quick Facts
2017-18 Enrollment2,200
2017-18 Appropriations$49 million
2017-18 Total Beginning Fund Balance$11.9 million

Audit Period

July 1, 2014 – April 3, 2018

For certain tests, we expanded our audit scope period back to July 1, 2012.

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