ALBANY – An audit of the Valhalla Union Free School District found
officials overestimated certain expenditure items for four consecutive
fiscal years and underestimated revenues in two of the four year, creating
cumulative operating surpluses of over $7.9 million.
The audit also found the balances of two reserves – the unemployment
insurance reserve and the retirement contribution reserve – were
more than the potential costs and had not been used for their established
purposes since being created in 2011.
State officials said the district should develop “realistic budgets”
based on the prior year’s actual results and anticipated operating
costs and to avoid raising more property taxes than necessary.
Auditors also recommended that the district use reserve funds identified
in their report in a manner that benefits district residents including
using those funds for their established purpose and transferring excess
reserve funds to unrestricted fund balance, where allowed by law, or to
other, necessary reserves established and maintained in compliance with
statutory directives.
