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NYS Comptroller


Audits of Local Governments and School Districts

Downsville Central School District – Fund Balance (2016M-79)

Released: June 17, 2016 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to examine the District’s general fund balance for the period July 1, 2014 through January 12, 2016.


The Downsville Central School District is located in the Towns of Andes, Colchester, Hamden, Hancock, Tompkins and Walton in Delaware County. The District, which operates one school with approximately 295 students, is governed by an elected five-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $9.9 million.

Key Findings

  • Unrestricted fund balance has exceeded the 4 percent legal limit over the past three years.
  • The District overestimated appropriations in the adopted budgets over the past three years.
  • The District’s reserve for compensated absences was overfunded by more than $700,000.

Key Recommendations

  • Ensure that the District’s unrestricted fund balance is in compliance with statutory limits and use the surplus fund balance in a manner than benefits District taxpayers.
  • Adopt budgets with appropriations that are based on historical estimates for expenditures.
  • Review the reserve for compensated absences and transfer excess funds to unrestricted fund balance, where allowed by law, or other reserves established and maintained in compliance with statutory directives.

Local Government and School Accountability Contact Information:

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