New York State Comptroller Thomas P. DiNapoli today announced the following school district audits have been issued.
District officials did not use a competitive process to procure goods and services. For example, auditors found that district officials paid a vendor $238,465 without documentation and they justified this was a valid exception to competitive bidding. They also did not issue requests for proposals for six of 10 professional services providers that were paid $416,367. In addition, district officials did not obtain quotes for 20 purchases totaling $150,293 out of 30 reviewed.
The board and district officials can better manage fund balance and reserves. Auditors determined surplus fund balance exceeded the limit each year by $8.1 million to $9 million, or 26 to 28 percentage points, which exceeded the 4 percent statutory limit. In addition, $13.4 million was improperly restricted in two reserves: $12.6 million in the employee benefit accrued liability reserve and $800,000 in the debt service reserve.
The board underestimated revenues by an average of $141,038 and overestimated appropriations by an average of $1.3 million over the three completed years. As a result, the district generated large operating surpluses and did not use about $1.1 million in appropriated fund balance. As of June 30, 2019, recalculated surplus fund balance totaled almost $1.7 million and was 10.7 percent of 2018-19 expenditures. In addition, the board and district officials did not develop adequate multiyear financial and capital plans.
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