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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Report Highlights

Letchworth Central School District - Reserves (2018M-176)

Released: January 18, 2019 -- [read complete report - pdf]

Audit Objective

Determine whether the Board properly established reserve funds and maintained them at reasonable levels.

Key Findings

  • The written reserve fund policy does not adequately address funding levels resulting in overfunded reserves that are not used.
  • Five reserve funds totaling $3.5 million are overfunded.

Key Recommendations

  • Adopt a more comprehensive written policy and review reserves to determine whether they are necessary and balances are reasonable.
  • Use excess amounts in accordance with statutory requirements and in a manner that benefits taxpayers.

District officials disagreed with certain aspects of our findings and recommendations. Appendix B includes our comments on issues raised in the District’s response letter.

Background

The Letchworth Central School District (District) serves the Towns of Centerville and Hume in Allegany County and the Towns of Castile, Eagle, Gainesville, Genesee Falls, Pike, Warsaw and Wethersfield in Wyoming County.

An elected nine-member Board is responsible for the general management and control of operations. The Superintendent of Schools (Superintendent) is the chief executive officer and is responsible, along with other administrative staff, for the District’s day-to-day management. The Business Administrator oversees the business office, maintains financial records and prepares financial reports.

The Board, Superintendent and Business Administrator are responsible for properly establishing and funding reserves.

Quick Facts
Enrollment940
Employees192
2018-19 Budget$19.6 million
2017-18 Year-End Reserve Balances$7.9 million

Audit Period

July 1, 2014 – July 30, 2018


Local Government and School Accountability Contact Information:

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