Why do we need a reserve plan?
A common focus of school district and BOCES audits from the Office of the State Comptroller has been reserves. Audit recommendations have included reauthorization of reserves on an annual basis and development of a reserve plan to be authorized by the Board. Although a reserve plan is currently not required based on law or regulation, we believe there is value in providing additional disclosure beyond the annual financial statements to the public. In the event that a reserve plan becomes mandatory and specific guidance is issued, this plan is subject to modification for compliance purposes.
In short, having a reserve plan will allow the Board of Education and resident taxpayers to know why these funds have been accumulated and the ultimate plan for saving or spending each account balance.