ALBANY – The unrestricted fund balance for the Rondout Valley Central School District exceeded the four percent statutory limit imposed on unrestricted fund balance in the 2012-2013 school year, the State Comptroller’s Office found. The state agency reviewed the district’s financial management for the period of July 1, 2012 through July 27, 2015.
The audit also found that the district had operating surpluses from 2012-13 through 2014-15 and during that time, revenues exceeded expenditures by more than $2.5 million and no amount of appropriated fund balance was used to finance operations. Had those funds been applied to expenses, they could have reduced property taxes, paid off debt or financed one-time expenditures, the audit said.
Key recommendations of the report suggested that Rondout adopt budgets with reasonable estimated appropriations and discontinue the practice of adopting budgets that result in the appropriation of unrestricted fund balance that is not needed to fund district operations.
The audit also said the district should review reserves, at least annually, to determine if the amounts reserved are necessary and reasonable. To the extent that they are not, reserves should be reduced to levels that comply with statutory restrictions and the district should develop a plan to use the surplus fund balance to benefit district taxpayers and is transparent.
The Rondout Valley Central School District is located in the towns of Marbletown, Rochester, Rosendale and Wawarsing.
