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Office of the State Comptroller - Local Government & School Accountability
Taxpayers' Guide to State and Local Audits

Audits of Local Governments and School Districts

Dundee Central School District – Financial Condition (2012M-108)


Released: November 2, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to examine the District’s financial activities for the period July 1, 2008, to April 11, 2012 by analyzing revenue and expenditure trends.

Background

The Dundee Central School District is located in Yates County. The District is governed by the Board of Education which comprises seven elected members. The District’s budgeted expenditures for the 2011-12 fiscal year were about $14 million.

Key Findings

  • Over the last three years, District officials have consistently overestimated expenses and increased the tax levy by 8 percent. These budgeting practices generated $4.5 million in operating surpluses, which caused the accumulated fund balance to exceed the statutory maximum of 4 percent of the ensuing year’s budget in the first two years reviewed.
  • To reduce the fund balance and stay within the 4 percent limit, District officials transferred moneys to the District’s reserves during the 2010-11 fiscal year, causing them to be overfunded by $3.9 million.

Key Recommendations

  • Develop expenditures estimates that are realistic and based upon all information available at the time the budget is developed. Develop a plan to use the surplus fund balance identified in this report in a manner that benefits District taxpayers.
  • Review all reserves and determine if the amounts reserved are necessary, reasonable, and in compliance with statutory requirements.

Local Government and School Accountability Contact Information:

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