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)