LITTLE VALLEY — Cattaraugus County hit the mark with its budget last year with expenditures and revenues.
“You spent just about exactly what you brought in,” said Thomas P. Malecki, CPA of Drescher & Malecki LLP, Cheektowaga, the county’s independent auditor. “Your (2016) fund balance is just about the same” as 2015.
The 2017 county budget is $228.6 million.
The county’s fund balance is where auditors like to see it, Malecki said. Auditors like to see about 16 percent fund balance, or surplus to cover the first two months of the year when there is a reduced cash flow and for unforeseen events, he said.
Malecki said he had no quarrel with County Treasurer Joseph G. Keller’s figure of $43.5 million for a fund balance, $36.5 million of which is undesignated. In 2016, revenues exceeded expenditures by only $60,433.
“To say it (audit) came in clean is a compliment to the county and the county Social Services workers,” Malecki said. He found “no deficiencies or material weakness.”
In a management letter, Malecki said the firm commented on the county nursing homes. A $8.8 million Intergovernmental Transfer payment in 2016 “makes this year’s results look great.” It was a one-time payment, however.
“At some point, there’s going to be a need for the county to make a formal contribution,” Malecki pointed out. “It’s something to keep an eye on.”
After the meeting County Legislature Chairman Paula Stockman (R-South Dayton), called it “a good audit. There was nothing surprising.”
She agreed that the nursing homes were “something to watch.” While they are separate enterprise funds, the county is required to make up any deficits.
“The County Legislature will have to decide what an acceptable threshold is for county funding for the nursing home,” Stockman added.
(Contact reporter Rick Miller at rmiller@oleantimesherald.com. Follow him on Twitter, @RMillerOTH)
