ICYMI: Audit Shows Bellmore-Merrick CHSD Over-Budgeted by Millions

According to an audit released by the state comptroller's office, the Bellmore-Merrick Central High School District over-budgeted by $21.3 million over three years, causing the district to exceed the legal limit of fund balance it could keep.

Comptroller Thomas DiNapoli's office released the audit this week, which looked at district expenses from the 2012-13 school year through 2014-15. According to the report, the district appropriated $24.4 million in reserves over the years to pay for expenses. But at the same time, the district over-budgeted by $21.3 million, and most of the fund balance wasn't used. The district over-budgeted by more than 5 percent each year.

"As a result, the district’s unrestricted fund balance has exceeded statutory limits," the report reads. "When adding back unused appropriated fund balance, the district’s recalculated unrestricted funds averaged almost 8 percent of the subsequent year’s appropriations."

The result, the audit says, is that the district may have levied more taxes than it needed to fund its operations.

The three areas where the district over-budgeted the most were employee benefits, teacher salaries and plant operations.

In its response, the district said it was fiscally strong, citing a recent Aa1 credit rating by Moody's.

"The Bellmore-Merrick CHSD adopts budgets that reflect its operating needs based on historical trends, contractual obligations and program costs," the district wrote in response to the audit. "The district budgets conservatively for the uncontrollable elements: fluctuating energy, health insurance and retirement costs; unexpected special education costs; and since 2010, a $4 million GEA state aid reduction."

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