CORTLAND ENLARGED SCHOOL DISTRICT 2015-16 BUDGET REVIEW

Office of the State Comptroller
New York State Comptroller Thomas P. DiNapoli

Local Government and School Accountability

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Cortland Enlarged City School District - Budget Review (B4-15-12)

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Released: April 15, 2015 -- [read complete report - pdf]

Purpose of Budget Review

The purpose of our budget review was to provide an independent evaluation of the District’s proposed budget for the 2015-16 fiscal year.

Background

The Cortland Enlarged City School District, located in Cortland County, has a tentative budget for fiscal year 2015-16 of approximately $49.6 million.

Key Findings

• The District’s has overestimated appropriations for payroll, health insurance, retirement, debt and utilities by $3.2 million.
• The District’s budget includes the use of $2 million from the retirement contribution reserve fund; however, estimated retirement costs are approximately $760,000. Using the remaining $1.2 million to fund other District expenditures is not an appropriate use of the reserve.
• After the District’s planned use of $500,000 in fund balance, the remaining unassigned fund balance is only $200,000 or 0.4 percent of the ensuing year’s appropriations.
• The District’s preliminary budget complies with the tax levy limit.

Key Recommendations

• Develop appropriation budgets that are reasonable and based on prior years’ actual amounts with appropriate increases.
• Restrict the use reserve funds to legally appropriate financing sources.
• Examine the use of fund balance and reserve funds as recurring financing sources and consider reduction in appropriations or increasing other sources of revenue.

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Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236