The Gowanda Central School District has acknowledged the findings outlined in a December 2024 audit by the New York State Comptroller’s Office covering fiscal years 2020-21, 2021-22, and 2022-23.
The audit stated that the District did not adopt realistic budgets by overestimating appropriations, appropriating a fund balance that was not needed, and not correctly managing reserves.
The District acknowledges the report’s conclusions regarding budget practices, fund balance usage, and reserve management. However, the District believes that key context into our thought process will paint a clearer picture for our community.
“Sometimes we make decisions that result in the district spending less than we anticipate,” Superintendent Dr. Robert B. Anderson said. “We made responsible, forward-thinking, and intelligent choices, such as ensuring we maintain reserves to cover unanticipated costs. We believe these decisions all benefit taxpayers now and into the future.”
Budgets for 2020-21 and 2021-22 were developed during an unprecedented time during the COVID-19 pandemic, which brought with it additional challenges. Given uncertainties surrounding student needs, state aid cuts, and evolving health guidelines, the District adopted prudent budgeting practices to prioritize flexibility and stability.
As a result of pandemic-related events, including remote learning, staffing shortages, and reductions in transportation costs, the District’s proposed budgets during this time resulted in a greater surplus.
“Given that this was the first pandemic experienced since 1919, it may be easy to criticize underspending after the fact, but it was certainly not easy to plan for the unknown,” said Barb Smith, District Business Administrator. “While the Comptroller feels our unanticipated surplus should have been used to reduce the tax burden for our residents, we felt a minimal increase and future flexibility to offset any reductions in our Foundation Aid Formula would be the more shrewd approach for our community.”
The audit also highlighted the use and management of fund balances and reserves. The District strategically allocated resources to ensure long-term financial stability and minimize taxpayer impact during uncertain economic periods. Reserves were built and maintained to support future obligations and emergency expenditures, aligning with legal guidelines and best practices.
The District will review its reserve policies, refine budgeting practices, and work to enhance transparency to keep our community well-informed. This includes formalizing spending plans and providing additional clarity on reserve use in future budgets.
“Although we do not necessarily agree with the comptroller’s wording, we need to ensure — and want to also reassure our residents — that we’re addressing, to the best of our ability, the findings that make fiscal sense for our community,” Smith said.
With a capital project proposal on the horizon, the District hopes to use some of its reserve balances to pay for the improvements at no taxpayer impact. Needs include a decision on possible repairs to the pool, which has been closed since 2019 due to emergency repairs and several other substantial needed upgrades.
The District remains committed to its mission of providing high-quality educational opportunities while ensuring financial responsibility to the Gowanda community.
Read the district’s full response to the Comptroller’s draft report in November 2024.
Read the Comptroller’s Audit here.