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.
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