Letchworth Central School District - Reserves (2018M-176)

Issued Date
January 18, 2019

[read complete report - pdf]

Audit Objective

Determine whether the Board properly established reserve funds and maintained them at reasonable levels.

Key Findings

  • The written reserve fund policy does not adequately address funding levels resulting in overfunded reserves that are not used.
  • Five reserve funds totaling $3.5 million are overfunded.

Key Recommendations

  • Adopt a more comprehensive written policy and review reserves to determine whether they are necessary and balances are reasonable.
  • Use excess amounts in accordance with statutory requirements and in a manner that benefits taxpayers.

District officials disagreed with certain aspects of our findings and recommendations. Appendix B includes our comments on issues raised in the District’s response letter.