Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit Finance 2024 topic
No spam. Unsubscribe anytime.
Auditors give Buffalo schools a clean opinion; district reports $48.6M surplus and $424M fund balance
Summary
External auditors issued an unmodified (clean) opinion on Buffalo City School District's 2023–24 financial statements; the district reported a $48.6 million surplus and an ending general fund balance of $424 million while projecting an $83.5 million deficit for 2024–25 and outlining a four‑year plan to manage it.
Lumsden & McCormick presented an unmodified audit opinion on the Buffalo City School District's June 30, 2024 financial statements at the board meeting on Oct. 9, saying auditors found no matters under government auditing standards and classified the district as a "low risk auditee."
"We're rendering an unmodified opinion on your financial statements, which is a clean opinion, meaning we believe them to be fairly stated in accordance with generally accepted accounting principles," auditor Jenna Sheehan said.
Chief Financial Officer Jim Barnes told the board the 2023–24 year ended with a $48,600,000 surplus, moving the district's general fund balance to $424,000,000. Barnes said revenues rose about $62 million year‑over‑year while expenditures rose about $64 million; the district intentionally built reserves over two years to meet a projected $83,500,000 deficit in 2024–25 and is implementing a two‑year plan to avoid layoffs while right‑sizing staff and protecting services.
Auditors reported no material weaknesses in internal controls but recommended continued attention to grant accounting, the food service fund balance (noting the fund carried about 12 months of expenditures against a prior state guidance of three months, recently raised to six months), and a review of extra classroom activity records. The auditors also tested a sample of federal programs (including ARP ESSER and child nutrition) and reported no findings.
Board members pressed staff about cash‑flow arrangements with the City of Buffalo and whether the district is receiving interest on advances; auditors noted a prior observation recommending the district examine that arrangement and encouraged further administrative follow‑up.
Next steps: the board will accept the audited financial statements; staff will continue work on grant accounting, monitoring the food service fund plan, and provide additional information about potential interest the district could earn on City‑held cash.
