Batavia City School District – Financial Condition (2016M-160)

Issued Date
July 29, 2016

Purpose of Audit

The purpose of our audit was to review the District’s financial condition and budgeting practices for the period July 1, 2012 through March 10, 2016.


The Batavia City School District is located in the City of Batavia and the Towns of Batavia and Stafford in Genesee County. The District, which operates four schools with approximately 2,300 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year totaled approximately $43 million.

Key Findings

  • While the Board appropriated fund balance in the annual budgets to help finance operations, these amounts were not needed because the District’s budgeting practices produced operating surpluses each year; District officials also appropriated reserves as a funding source in the annual budgets that were not expended as budgeted.
  • The District’s unrestricted fund balance was in excess of the statutory limit.
  • The District improperly accumulated $1 million of surplus cash in the debt service fund.

Key Recommendations

  • Develop realistic estimates of appropriations and the use of fund balance and reserves in the annual budget.
  • Review all reserves to determine if the amounts reserved are necessary and reasonable. Excess funds should be transferred to unrestricted fund balance (where allowed by law) or to other reserves established and maintained in compliance with statutory directives.
  • Return cash improperly retained in the debt service fund to the general fund.