Albany, NY (WIBX) - The New York State Comptroller has completed an audit of the Clinton Central School District, the state office finding that district officials financed construction and legal costs associated with a capital project by recording improper interfund loans to the capital project fund. As a result, the district's available fund balance was consistently overstated, meaning that the capital project fund did not have the financial resources to repay more than $1 million interfund loans.

State auditors calculated that the reported fund balance of $1.5 million at June 30, 2010 was actually about $497,000. The Comptroller's report also concludes that district officials have annually issued revenue anticipation notes to finance district operations. According to Comptroller DiNapoli, the Clinton School District currently lacks the fiscal resources to properly comply with the statutory requirements for issuing RANs and still pay district bills.

To review the State Comptroller's Audit, CLICK HERE