By Matthew Avitabile
By Liz Page The recent release of an audit by the New York State Comptroller's Office (OGS) cites the Stamford Central School District for overestimating appropriations during the time of the audit from July 1, 2019 to Sept. 30, 2022. It also cites unnecessary fund balance and exceeded the statutory limit for surplus fund balance.This resulted in the District levying more taxes than needed to fund its operations, states the report. The audit lists the key findings of the audit, as follows: The Board overestimated appropriations from the 2019-20 through 2021-22 fiscal years by an average of $1.4 million (14 percent) and planned to use fund balance to cover operating deficits when the District realized operating surpluses. Surplus fund balance exceeded the 4 percent statutory limit in two of the last three fiscal years by approximately $700,000 (6.8 percentage points) and $1.9 million (18.7 percentage points). Four of the District’s 11 reserves were not reasonably funded, or used to pay related expenditures, during the last three fiscal years. For example, the retirement contributions for employees' reserve balance of $602,749 was sufficient to cover expenditures for five years. Two expenditure accounts had overestimated appropriations totaling more than $100,000 in two of the last three fiscal years, as follows: Board of Cooperative Educational Services (BOCES) services were overestimated by an average of $373,047 (54 percent), with variances ranging from $339,687 to $406,406. Health insurance premiums were overestimated by an average of $281,916 (14 percent), with variances ranging from $114,600 to $401,667. The Superintendent, Business Manager and Board President told us that the budget variances for BOCES services were due to the uncertainty of knowing how many students might require these services each year. While the costs for BOCES services can fluctuate depending on the needs and number of students enrolled in the program, officials must monitor this expenditure to help ensure future appropriations are more realistic. The audit recommends the board adopt realistic budgets and appropriate fund balance only when needed to fund operations, to reduce surplus fund balance to comply with the statutory limit and use in a manner that benefits taxpayers and to adopt a written reserve policy that establishes optimal or targeted funding levels. "The district generally agrees with the findings and recommendations within the report, however, the district would like to offer a few observations to add context," states Dr. Glen Huot, superintendent at SCS in response to the audit. Dr. Huot said he welcomes the audits. He said the reality is that the audit was done during an unprecedented time of a global pandemic, with school districts all across the state dealing with the same issue related to Covid-19. "It was a two-year period of time where nothing was normal," said Huot. The District also appropriated a fund balance for reserves for capital projects. SCS is currently planning a $7.3 million project that was approved by the district voters. $2.7 million in capital reserve is earmarked for that project. The dates for the audit, states Huot, made it particularly challenging to respond to the Comptroller's audit, due to the uncertain nature of school funding during the global pandemic, the resulting financial impact and simultaneous emergency relief measures at the state and federal levels that were being debated (and later executed). There were warnings for school districts to plan for 20 to 30 percent reductions in state aid and to plan for substantial deficits in the coming year. SCS is heavily reliant on state aid and districts were warned to prepare for serious fiscal problems before they arrive. "We appreciate the audit response relative to the district's reserves and agree with the report's determination that the capital, liability claims, property loss, repair, tax certiorari, retirement contributions for teachers and insurance reserves were reasonably funded. The district feels to prepare for an unanticipated event, such a global pandemic which resulted in thousands of job losses in the state, that the unemployment reserve was adequately funded (as well as retirement contributions, accrued liability, workers compensation reserves, ect.) The district will evaluate these reserves and consider the recommendations in accordance with the audit report.
