The Marcellus Central School District Board of Education accepted the auditor's report for the school year ending June 30 at the meeting on Tuesday Oct. 21. The report, completed by a Liverpool accounting firm, concluded that MCSD is in good financial shape.
"This was a very successful year for you," said David Bowles, a partner from Kane, Bowles and Moore, when he addressed. "You've really strengthened your financial situation."
MCSD took money from a reserve fund to finance a capital project aimed at improving the school. This capital project included the addition of buildings and the removal of asbestos, among other things.
A reserve fund is an indicator to the state that a district is in good financial footing, and the depletion of Marcellus' reserve fund caused the state to identify MCSD as in financial trouble.
"For the past two years, we as a district were in fiscal distress. We were identified by the state as needing help," district Superintendent Craig Tice said.
However, Anthony Carnevale, the district's business manager, stressed that the district was never in fiscal distress.
"We had money in the reserve fund. That's what it's for. We knew we'd be back to where we were in a couple of years," he said.
The audit report last Tuesday confirmed that the district had replenished its surplus, Carnevale said.
Bowles reported that in the general fund for the district, $800,000 is undesignated in the balance. This means the district essentially has $800,000 extra in the bank.
"This money can be used to support future growth. This is approximately where you want to be," Bowles said.
This surplus will come in handy, and just in the nick of time. The state is suffering from a $5 billion deficit, Bowles said, and cuts will most certainly be made in school aid.