Audit committee recommends reserve targets; board approves charter updates and reserves report

The Avon Central School District’s Audit Committee presented proposed changes to its charter and a revised General Fund Reserves & Debt Service Report at the Jan. 13 board meeting, and the Board of Education approved the updates unanimously. Audit Committee chair Jim Colt outlined a two-part approach to rightsize reserve balances: identifying pre‑COVID baseline contributions and beginning a measured process to reduce excessive reserves.

Dr. Ryan Pacatte, the superintendent, said the committee used “the five relatively stable years prior to the audit” as a baseline and noted that the pre‑COVID average annual contribution to reserves was approximately $750,000, roughly 3.7–3.8% of the annual budget. The committee recommended converting the policy’s “periodic review” language to an “annual review” and expanding the charter to include financial-management oversight. The board approved the charter update and the reserves report by recorded votes (each motion carried 5–0).

Committee materials and the Superintendent’s presentation highlighted operational constraints that affect how quickly reserves can be drawn down, including federal grants that are not finalized until January or later and uncertainty around state “save harmless” decisions. Pacatte told the board the Fund Balance Report will be posted online going forward and that target balances will inform decisions about smaller, ongoing capital projects and staffing or pay adjustments aimed at bringing the budget closer to break‑even.

Next steps indicated in the Audit Committee presentation include establishing target reserve levels consistent with the CAP (Corrective Action Plan) and monitoring adjustments over the coming budget cycle. The board did not adopt a specific dollar‑by‑dollar plan at the meeting; rather, members approved the charter and report that set the framework for future action.