Commack SD Goes On Defense After NYS Audit

“As you may know, the NY State Comptroller’s office, by law, must periodically audit all municipalities including school districts. Commack UFSD was recently audited as a part of this routine process and received the final audit report late last week. First and foremost, we are happy to report that the audit did not find any instances of illegal activity or fraud of any kind.” Commack School District’s response to NYS Comptroller DiNapoli’s audit.

The above statement is part of an email blast sent out by the Commack School District Sunday, August 2, 2015. The email is a response to an audit performed by NYS Comptroller Tom DiNapoli’s office which resulted in a message from the auditor stating, “The Board and District officials need to improve oversight of the District’s budget process to adequately manage the District’s financial condition.” 

One of the problems mentioned in the auditor’s report is that District budgets were approved which overestimated expenditures. According to the report in the budget years 2011 - 2014 the district budgeted $24.8 million more than it spent. 

“The District’s practice of consistently planning operating deficits by appropriating unrestricted funds that were not needed to finance operations in effect caused the District to exceed the statutory limitation of unrestricted fund balance of no more than 4 percent of the ensuing year’s appropriations. As a result, the District retained significantly more than the amount of unrestricted funds allowed. Overestimating expenditures and unnecessarily appropriating fund balance caused available fund balance to appear to be within the legal limit. As a result, the Board and District officials have withheld significant funds from productive use and have not adequately presented the District’s financial condition to its residents.” NYS Office of Comptroller.

Calling it a philosophical difference in the budget process the District’s response denied wrongdoing, “Diligent cost-saving measures enacted by our District officials and staff have resulted in significant savings each year (see chart below). We go to great efforts not to spend the money the residents of this community entrust to us.  Further, the District returns every dollar not spent in the budget to the taxpayers to keep the tax levy as low as possible, and to continue to offer the multitude of programs and services that Commack is known for, and the community expects.” 

Amount Saved / Year                            $Returned to Taxpayers in Budgeting Process 

$5.7 million / 2011-12	$5.7 million / 2012-13
$9.677 million / 2012-13	$9.677 million / 2013-14
$8.332 milion / 2013-14	$8.332 million / 2014-15
The amount saved each year through strong budgeting practices and the District’s cost-saving actions is returned to the taxpayers the following year. None of the unspent money is retained or put into reserve funds by the District - all money is returned to the taxpayers. (From District’s email) In response to the audit, Dr. Donald A. James, Superintendent of Schools wrote, “As recommended, the District will review the expenditure budget areas and the variables affecting such discussed in the audit report (regular and special education instruction and employee benefits) in depth and detail to assure reasonable estimates are presented.” A Board of Education meeting will be held Thursday, August 6 at Commack HS.