Williamsville district disagrees with issues found in state audit

Smith State Comptroller Thomas P. DiNapoli has reported that poor budget practices in the Williamsville Central School District caused revenues to exceed expenses by $30.1 million from 2004-05 through 2007-08 while at the same time the district increased the tax levy by $10.5 million.

An audit released Jan. 28 cited approximately $8.9 million in excess funds. DiNapoli said the money could be used to benefit taxpayers by reducing the property tax levy or paying one-time expenses.

“School districts should be watching every dime too. Williamsville Central School District needs to use more realistic budget numbers. Taxpayers should not have to pay more property taxes than necessary.” he said.

The audit found the district did not prepare reasonable budgets because it consistently overestimated expenditures and underestimated revenues.

DiNapoli’s audit found the district used a majority of the annual surpluses to fund reserves. As of June 2008, the balances in the district’s 11 general fund reserves totaled $38 million, of which approximately $8.9 million is more than the district needs to meet anticipated liabilities.

Williamsville Central School District Superintendent Howard Smith said the district has 90 days to review the findings in the audit and respond. When asked if the audit would cause changes in the district, he said he wanted the staff to review the recommendations first before commenting.

However, he added that if it’s determined the recommendations would make the district run better the district would adhere to them.

Howard said he was disappointed by the negative tone of the audit report because a review of two years worth of district records found no instances of fraud or misuse of funds.

“That was really the overarching message, from our point of view,” he said. “The district’s financial condition is excellent.”

The state has been investigating schools for the past several years since finding misconduct in a Long Island district.

Smith feels that the state’s mission has changed and it has now decided to opine its feeling about how districts conduct their financial planning.

“There is a disagreement between the opinion of the auditor, the district and our external auditor on what makes for good financial planning,” he said.

He said the comptroller has a judiciary responsibility, and while the district also has the same responsibility, it also has to provide the best possible education program for 11,000 students.

Smith said the district is in tune with future financial concerns and has prepared itself by having reserves.

“We saw difficult financial times,” he said. “We use reserves as revenue to keep increases down.”

He said the district is looking at long-term planning while the state comptroller’s audit was looking at short-term planning.

According to a release from the state, DiNapoli’s audit also found the district’s claims auditor did not audit every claim prior to payment as required by Education Law. As a result, there is an increased risk that the district will make payments for other than district purposes.

The report recommends that the district prepare budgets that realistically estimate revenues and expenditures and use the surplus reserves to benefit taxpayers by reducing property taxes, paying off debt or financing one-time expenses.

In order to improve accountability of the state’s schools, Di- Napoli’s office will audit all of New York’s school districts by March. The office has completed 732 school audits.

Do you feel the Williamsville Central School District has poor budgeting practices? E-mail your letter to the the editor to jfinch@beenews.com