HFCS Audit Not A Bad Thing
By Doug La Rocque
The Hoosick Falls Central School District recently received the results of an audit done on the district for the time period of July 1, 2015 through the end of the 2018-19 School Year. The NYS Comptrollers Office, which conducted the audit, found that overall the district is on a very sound financial footing and is well managed. The Comptroller highlighted three key findings, which were the unauthorized inter-fund transfers totaling 1.2 million dollars for use in the ongoing capital improvement project, which at that point, had not yet been approved by the voters. It was approved last March. It also said the District over-estimated appropriations for several years and had an unrestricted fund balance above the allowable amount of 4 percent.
Speaking with the Eastwick Press on Monday, January 6, District Superintendent Pat Dailey said the devil is really in the details, so to speak. The money for the capital project was in the unrestricted fund balance earmarked for just that. The comptroller would like to have seen it in a capital projects reserve account. Superintendent Dailey said “basically, we had the funds in parking lot A and the State said we want it in parking lot B.” In his response to the audit, Mr. Dailey said the School Board will, with voter approval, also establish a new capital reserve.
As to the higher than allowed unrestricted fund balance, the Superintendent explained that occurred because the capital project reserve funds were in parking lot A. He indicates in his letter to the Comptroller that money is being used to pay off debt from the capital project and reduce property taxes. He also stated to The Eastwick Press that some of the higher appropriations levels may have been the result of waiting for promised grant money to actually appear.
In the District response, Superintendent Dailey also stated the school board participated in a “retreat” last summer to focus on fund balance, inter-fund transfers, reserves and the different types of funds. He also said the Board plans a workshop this month to focus on building the budget for the upcoming school year. The current district budget totals $20.3 million.