New York State Comptroller Thomas Dinapoli has completed his audit of the Frankfort-Schuyler School district.

The audit found that the district did not base their budget on known or historic trends, but instead overestimated expenditures by $2.7 million, resulting in a surplus for the past four school years.

It was also determined that the School Board did not adopt a written reserve fund policy or develop a multi-year financial plan, which would avoid large fluctuations in tax rates.
The district also retained an average of approximately $342,000 of unrestricted funds in the debt service fund, $1.1 million in the agency fund’s group health insurance account and $429,000 in excessive reserves over these years.

When adding back unused appropriated fund balance, excess money retained in the debt service, agency funds and reserves, the district’s recalculated unrestricted fund balance exceeded the statutory limit, averaging more than 18% of the upcoming year’s appropriations, or more than four times the statutory limit.

DiNapoli's office is recommending that the district develop a fund policy that clearly outlines a plan for the use their financial reserves and budget surplus in the future.

To read through the audit yourself, visit the NY State Comptroller's website.