The East Ramapo Central School District has experienced both planned and unplanned operating deficits in the general fund over the last two fiscal years and as a result, the district’s fund balance has been depleted.

An audit by the state comptroller’s office for the fiscal years 2011-12 and 2012-13 estimated the district will face a deficit fund balance of $8.2 million for the 2012-13 fiscal year. That is $800,000 more than the $7.4 million budget note issued to fund the deficit.

District officials planned to use the proceeds from a property sale to retire the budget but, but the sale was delayed due to a lawsuit filed with the State Education Department.

The auditors said unless the budgetary and cash flow problems are addressed, future district operations could be adversely impacted.

The comptroller’s office recommended development of “reasonable revenue and expenditures estimates” and reduced reliance on one-time revenues to finance recurring expenditures as they will not be available for future budgetary purposes.

Auditors also said the district should develop a plan to address the additional unanticipated shortfall for 2013. They said the district should monitor and adjust budgeted revenues and expenditures to avoid operating deficits.

(Source: MidHudsonNews)