State auditors found that the Honeoye Central School District held excess money in reserves while the Village of Groton bought nearly $136,000 in goods and services for a capital project without seeking required competition.
The findings were part of four municipal and school audits released by New York State Comptroller Thomas DiNapoli.
Honeoye reserves draw scrutiny
Auditors said Honeoye's board and district officials did not effectively manage fund balance, although they generally kept reported surplus fund balance within the statutory 4% limit.
The district stayed within that limit by transferring surplus money into reserves at or after the end of the year, according to the audit. It also maintained $1.1 million in excess fund balance in its debt-service fund.
As of June 30, 2025, two general-fund reserves totaling $977,890 were not reasonably funded, auditors said. The district serves portions of Ontario and Livingston counties.
Groton purchases lacked competition
The Village of Groton properly solicited its original construction contracts for a $3.7 million capital project, but auditors said later purchases did not follow state law or the village's procurement policy.
The village board obtained $135,900 in additional goods and services without seeking competition, according to the comptroller's office.
Two other districts reviewed
Auditors found that South Huntington Union Free School District officials did not ensure credit-card charges were authorized, supported, tied to valid district purposes or properly approved.
The district's claims auditor also did not review and approve every claim before payment, increasing the risk that public money could be spent on goods or services without a proper district purpose.
At Beekmantown Central School District, auditors determined investments were legal, safe and liquid but found no comprehensive investment program. Officials did not prepare cash-flow forecasts or solicit competing interest-rate quotes, which auditors said cost the district an opportunity to earn more than $1 million in additional revenue.
The comptroller's release summarized the audit findings but did not include responses or corrective-action timetables from the four entities.
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