New York Allots $47 Million Toward Free Community College for Adult Learners

New York Allots $47 Million Toward Free Community College for Adult Learners

The New York State budget for 2025-2026, passed in May, includes several education initiatives aimed at expanding access to educational opportunities for New York residents. Among these initiatives is the SUNY and CUNY “Reconnect” program, which launched with the start of the Fall 2025 semester. The State has allocated $47 million toward this program, which offers free community college to adult SUNY and CUNY students in high-demand fields. Below are some of the highlights of this statewide initiative.

What is the purpose of the program?

The purpose of the CUNY/SUNY Reconnect program is to expand access to higher education and career mobility for adult learners in New York State. The program aims to make college affordable for a greater pool of New Yorkers while also strengthening the state’s workforce in emerging industries.

Is this program new to New York State?

CUNY Reconnect first launched its pilot program in the fall of 2022, with funding of $4.4 million. The FY26 enacted state budget significantly expands the reach and impact of the CUNY Reconnect program. SUNY Reconnect launched for the first time in 2025.

Who qualifies for the program?

The program is open to New York residents between the ages of 25 and 55 with no previous college degree, who enroll in approved SUNY or CUNY associate degree programs in the following high-demand fields:

  • Advanced manufacturing
  • Artificial Intelligence
  • Cybersecurity
  • Engineering
  • Technology
  • Nursing and allied health professions
  • Green and renewable energy
  • Pathways to teaching in shortage areas

Students must be New York State residents or qualify for in-state tuition. Students must also take at least six credits per semester and must complete their degree within ten semesters.

What costs does the program cover?

The Reconnect program covers tuition, fees, books, and supplies, after applicable financial aid, for qualifying students. Eligible students will also have access to academic advising and personal support through the program.

Are online courses covered?

Yes, both SUNY and CUNY Reconnect cover eligible online courses in addition to in-person classes.

When is funding available?

Funding became available at the start of the Fall 2025 semester.

Have more questions?

New York’s free community college program aims to remove financial barriers to higher education for adult learners while also promoting workforce development in high-demand fields. Additional information regarding this initiative, including application information and answers to Frequently Asked Questions, can be found on the SUNY and CUNY websites. And as always, for all your school district’s accounting, tax, audit, and advisory needs, please don’t hesitate to reach out to RBT CPAs. RBT CPAs has been providing accounting services to organizations and businesses in the Hudson Valley and beyond for over 55 years. Call us today to find out how we can be Remarkably Better Together.

The Issue of Employee Retention in Housing Authorities: Costs, Challenges, and Solutions

The Issue of Employee Retention in Housing Authorities: Costs, Challenges, and Solutions

High turnover rates have long been an area of concern for public housing authorities. High rates of staff turnover not only hurt PHAs financially but also reduce the quality and efficacy of programs. Low retention rates can be attributed to a variety of factors, including low wages, lack of resources, and limited upward mobility, among other reported causes. So, what can PHAs do to combat high rates of turnover? This article will discuss the costs of low retention, the reasons PHA employees are leaving, and the strategies PHAs can employ to counteract these issues.

Costs of High Turnover for PHAs

Below are some of the costs of high turnover for housing authorities:

  • Increased time and money spent hiring and training new employees.
  • Loss of institutional knowledge.
  • Increased strain on remaining staff.
  • Reduction in the quality of services.

Causes of Low Retention in PHAs

The following are some of the most commonly reported reasons that PHA employees leave their jobs:

Strategies PHAs Can Implement to Counter These Issues

Below are some actionable steps PHAs can take to reduce staff turnover:

  1. Offer competitive benefit packages for health and retirement.
  2. Invest in training and career development.
  3. Implement a formal system for onboarding new employees, including mentorship programs, frequent check-ins, relevant training materials, and sufficient time during the work day to complete training.
  4. Leverage technology such as updated software and automation to reduce administrative burden.
  5. Identify what tools team members specifically need to accomplish their jobs successfully.
  6. Implement performance feedback measures.
  7. Share open positions internally with team members through a variety of channels (i.e. the PHA’s website, staff meetings, email, text, printable notices, etc.)
  8. Schedule regular career conversations with team members.
  9. Increase communication with team members, employing varied communication methods such as all-staff meetings, video messages, department meetings, one-on-one meetings with supervisors, newsletters, suggestion boxes, and employee surveys.
  10. Respond to employees’ questions and concerns in a timely manner.
  11. Create succession plans.
  12. Regularly review policies and procedures, updating as needed.
  13. Allow hybrid or remote work arrangements where possible.
  14. Implement employee wellness programs.

Conclusion

Though high turnover rates remain a significant challenge for PHAs, there are steps that housing authorities can take to improve employee satisfaction and retention. While you consider how to improve your PHAs’ retention strategies, you can trust RBT CPAs to take care of your accounting, tax, audit, and advisory needs. Contact us today to learn how we can be Remarkably Better Together.

What are the Fiscal Responsibilities of Board Members?

What are the Fiscal Responsibilities of Board Members?

Members of the governing board are responsible for developing and overseeing the municipality’s fiscal policies and operations. This article provides an overview of the fiscal responsibilities of board members, as outlined in the Local Government Management Guide by the Office of the New York State Comptroller.

  1. Developing Fiscal Policies

Board members are responsible for developing, adopting, and reviewing fiscal policies. These policies must be communicated clearly to all relevant members of management and staff. Local governments should review their fiscal policies annually and update them as needed. Below are the fiscal policies required by general municipal law, as well as policies that, while not required by general municipal law, are recommended to prevent fraud and abuse within the municipality. Descriptions of each of these policies can be found in the OSC’s guide.

Policies Required by General Municipal Law:

Code of Ethics, Investment Policy, Procurement Policy.

Recommended Policies:

Wire Transfer and Online Banking Policy, Travel and Conference Policy, Credit Card Policy, Computer Use Policy, Cell Phone Use Policy, Capital Asset Control Policy.

Additional policies may be developed for other aspects of financial operations, including budgeting, cash receipts and disbursements, managing fund reserves, retirement reporting, billing procedures, claims processing, financial reporting and network security.

  1. Monitoring Fiscal Operations

Interim Reports:

Applicable adopted policies should include instructions regarding the timing and content of periodic or “interim” reports. Board members are responsible for reviewing regular financial reports from senior management and department heads. Interim reports contain information related to financial position, results of operations, budget status, policy compliance, service or project costs, performance measures, and legal compliance matters.

Budgetary Status Reports:

The governing board is responsible for adopting and monitoring the budget. The CFO, designated budget officer, and department heads should monitor actual revenues and expenditures, reporting these numbers to the board. These numbers can then be compared to budget estimates to identify any variances or need for corrective action. It is the duty of the board to review budgetary status reports, question any unfavorable variances, and ensure the necessary corrective action is taken.

Correcting Budgetary Problems:

When the budgetary status report indicates unfavorable variances or issues, the governing board is obligated to implement corrective action in a timely manner. Corrective actions may include restricting additional expenditures in that particular area or making a budgetary amendment. A budgetary amendment can be accomplished by:

    • transferring between appropriations within the same fund
    • appropriating available fund balance
    • appropriating aid, grants, gifts, or insurance proceeds
    • issuing budget notes

Special Purpose Reports:

Local officials may prepare special purpose reports for certain categories to be reviewed such as construction projects, procurement, personnel, receivables, and particular revenues or expenditures.

  1. Conducting Audits

Lastly, the governing board is responsible for conducting audits. Audits are used to assess the municipality’s financial operations, identify issues, and ensure the proper management of public funds.

Claims Auditing:

The role of the board in auditing claims serves as an important internal control because it separates the purchase of goods/services and the authorization of payments for those goods/services.

Annual Audits:

The board is required to conduct an annual audit—or to arrange an annual external audit (depending on specific audit requirements)—of the municipality’s financial records, books, and documents.

Board-Directed Annual Audits:

Annual audits conducted by the governing board should ensure that all financial records are complete and up-to-date, that all transactions are recorded properly, that accountability is computed monthly, and that all required reporting is done accurately and timely.

Corrective Action Plans:

Any municipality that receives an audit report or management letter with recommendations should prepare a corrective action plan. A corrective action plan is a written document detailing the corrections planned in response to each recommendation. The governing board is responsible for reviewing and approving the corrective action plan.

Additional Resources and Guidance

The governing board’s oversight is integral to the financial health of a municipality. As such, it is crucial that board members are aware of their responsibilities regarding fiscal operations. Additional resources and reference information for board members, including specific audit and recordkeeping requirements, can be found in the appendices at the end of the OSC’s guide. The OSC’s “Academy for New York State’s Local Officials” also provides training, resources, and webinars on various financial topics designed specifically for local government officials. And as always, RBT CPAs is here to support your municipality’s accounting, tax, audit, and advisory needs. Contact us to learn more.

How Does the One Big Beautiful Bill Act Impact K-12 Education?

How Does the One Big Beautiful Bill Act Impact K-12 Education?

The recently passed budget reconciliation bill, entitled the One Big Beautiful Bill Act (OBBBA), implements several new tax and spending policies and extends many policies previously set to expire. The OBBBA contains hundreds of provisions applying to individuals, businesses, and federal programs. Policies affected range from tax rates and incentives to healthcare programs to defense spending, and more. RBT CPAs has been assessing the impact of the OBBBA across the industries we serve. This article highlights some of the key provisions of the One Big Beautiful Bill Act impacting K-12 education, both directly and indirectly.

Changes to Medicaid

The OBBBA makes several significant changes to Medicaid programs, including a new requirement that able-bodied adults aged 19 to 64 enrolled in Medicaid must spend at least 80 hours per month working or participating in other qualifying activities (i.e., community service, job training, educational programs) to maintain eligibility. Certain exemptions apply, including for pregnant women, caregivers of young children, and individuals with specific qualifying medical conditions. The legislation also reduces Medicaid eligibility based on legal status. An individual’s eligibility must now also be reassessed by states at least every 6 months.

Additionally, according to estimates released by the Congressional Budget Office (CBO), the OBBBA is projected to reduce federal health spending by approximately $1 trillion over the next decade. CBO estimates that these cuts will increase the number of people without health insurance by 10 million by 2034.

Not only do many K-12 students throughout the U.S. rely on Medicaid for health insurance, but many school districts also rely on Medicaid funding to support health services for students from low-income families. The stricter eligibility requirements and funding cuts imposed by the OBBBA are expected to result in many students losing access to health insurance as well as a reduction in school-based health services.

Changes to SNAP

The new legislation also imposes steep cuts to the Supplemental Nutrition Assistance Program (SNAP), as well as stricter eligibility requirements for recipients. As a result, many families are predicted to lose access to government-funded food assistance.

Increased Child Tax Credit

The OBBBA permanently increases the Child Tax Credit (CTC) to $2,200 per qualifying child under the age of 17, effective for tax year 2025 and indexed annually for inflation. The maximum refundable portion has been raised to $1,700, also adjusted annually for inflation. At least one parent and all qualifying children must possess valid Social Security numbers in order to qualify for this credit.

Expansions to 529 Education Savings Plans

The OBBBA expands permitted uses of funds in 529 education savings plans by broadening the definition of “qualified expenses.” Beyond tuition, tax-exempt distributions from 529 savings plans can now apply to additional expenses related to enrollment in private, public, or religious elementary or secondary schools, including books, materials, testing fees, tutoring costs, dual enrollment fees, and educational therapies. The OBBBA also increases the annual limit for 529 account distributions for K-12 expenses from $10,000 to $20,000.

Federal School Voucher Program

Beginning in 2027, individual taxpayers can claim a dollar-for-dollar tax credit of up to $1,700 for gifts to qualified K-12 Scholarship Granting Organizations (SGOs) operating in states that have elected to participate. SGOs distribute these donations through scholarships for students enrolled in private schools. Many in the education space are concerned that this federal tax incentive created by the OBBBA will divert taxpayer money away from public schools to private schools.

Questions and Further Guidance on the OBBBA

The OBBBA is an expansive piece of legislation enacting many significant policy changes, several of which will impact public school districts, families, and students. Please note that IRS guidance on the new legislation is still forthcoming. RBT CPAs will continue to provide updated information to clients as more detailed guidance is issued. In the meantime, if you have questions regarding the recent tax law changes, please don’t hesitate to reach out to our experts at RBT CPAs. And as always, RBT CPAs is here to support all of your school district’s accounting, audit, tax, and advisory needs. Contact us today to find out how we can be Remarkably Better Together.

The Importance of Internal Controls and Internal Control Assessments in Public Housing Authorities

The Importance of Internal Controls and Internal Control Assessments in Public Housing Authorities

Internal controls in Public Housing Authorities ensure that public funds are being allocated and used properly. Management at all levels is responsible for implementing and updating these controls. When correctly implemented, a system of internal controls helps to minimize financial risk, prevent fraud, and maintain the accuracy of financial records. Internal control processes must be regularly assessed in order to maintain their effectiveness.

What are internal controls?

Internal controls are processes designed to help prevent fraud, enhance the reliability of financial statements, reduce the risk of unexpected financial losses, and ensure compliance with laws and regulations. Internal controls include procedures for authorization, recordkeeping, reconciliations, and auditing.

Why do PHAs need internal controls?

According to the Office of Inspector General’s Integrity Bulletin, internal controls serve the following purposes for PHAs: they protect assets (including cash and physical assets such as buildings), ensure the accuracy of records, promote operational efficiency, achieve the mission and goals of the PHA, and ensure compliance with policies, rules, regulations, and laws.

Implementing Internal Controls

Senior managers are responsible for establishing, enforcing, and maintaining internal control systems for key operational and financial processes. Some areas for which internal controls should be established include:

  • Tenant eligibility
  • Tenant files
  • Cash management
  • Procurement
  • Payroll processing
  • Budgeting
  • Bank reconciliations
  • Financial recordkeeping
  • Financial reporting
  • Internal audits
  • Cash disbursements
  • Cash receipts

The Office of Inspector General recommends the following internal control methods for maintaining operational effectiveness and preventing abuse:

  • Establishing responsibility by assigning each task to only one person and maintaining organizational structure
  • Implementing a separation of duties
  • Using compensating controls such as additional monitoring or secondary sign-offs when a separation of duties is not possible
  • Restricting access to systems, information, and assets to necessary parties only
  • Creating policies and procedures with written directives
  • Establishing systems of recordkeeping

Assessing Your Internal Controls

Regularly evaluating your PHA’s internal controls is a critical step for minimizing financial risk. Weaknesses in internal controls can develop if employees misunderstand the guidelines or if the guidelines are not updated to match changing regulatory requirements. All of the mechanisms discussed above must be periodically reviewed to ensure that they are achieving their objectives in preventing risk to the PHA.

Reviewing internal controls may involve the use of risk assessments, which identify potential threats and weaknesses in the operations of the organization. Audits of financial records can also help to identify gaps in compliance. If weaknesses are found, then operating procedures can be amended accordingly.

Need help reviewing your internal control processes? RBT CPAs’ experts are available to provide internal control assessments for your PHA. At RBT CPAs, we understand the unique compliance and regulatory environment that PHAs operate within. Our firm has been serving organizations in the Hudson Valley and beyond for more than 55 years. You can count on RBT CPAs’ professionals to help maintain your PHA’s reputation for transparency, accountability, and trustworthiness by providing exceptional accounting, advisory, audit, and tax services.

For more information about how our firm can help to maintain the financial health of your PHA, visit our website or give us a call.

Is It Time to Outsource Your Municipality’s Accounting Functions?

Is It Time to Outsource Your Municipality’s Accounting Functions?

Our last article discussed the concerns raised by the Office of the NY State Comptroller (OSC) over financial transparency and accountability in New York State Villages. The OSC report entitled “Transparency and Accountability of Fiscal Activities in Villages” indicates that many of the weaknesses in village financial reporting can be attributed to vacancies and inconsistencies in CFO roles. Understaffing isn’t a new issue for local governments—over the last several years, experienced employees have been retiring from the civil service without enough incoming staff to replace them. Younger generations are less drawn to the public sector for various reasons, including the appeal of higher-paying private sector roles over state benefits and pensions. Insufficient accounting staff in municipalities increases the risk of serious issues such as errors in financial reporting, missed deadlines, and a lack of transparency and accuracy in financial processes. Given these and other factors, outsourcing accounting functions may be a prudent choice for local governments. So, is outsourcing the right decision for your municipality? Let’s consider some of the benefits.

Expertise and Accuracy

Access to expertise is the most significant advantage of outsourced accounting. Accounting firms are equipped with seasoned professionals well-versed in financial management best practices and the latest regulatory changes. These professionals provide advice on financial decision-making and ensure compliance with legal requirements, minimizing the risk of costly errors and penalties. An outside expert specializing in governmental accounting can help a municipality identify ways to operate more efficiently, maintain compliance with unique governmental regulations, and reduce the risk of fraud.

Continuity of Service

Given the staffing shortage currently facing the public sector, civil servants who leave their positions can be difficult to replace. While in-house CFOs or accountants can resign, fall ill, or go on vacation, leaving the municipality with operational gaps, accounting firms have staff available consistently to ensure uninterrupted service.

Reduced Staffing Costs

One factor a municipality must consider when deciding whether to outsource services to an accounting firm is the real cost of hiring a new full-time employee. In addition to salary, the municipality also bears the cost of recruitment, employee training, medical benefits, and payments into a pension fund. New hires also require time to adjust to the role, learn the ropes, and reach full productivity. Outsourcing eliminates many of these costs associated with in-house hires. Additionally, outsourcing allows municipalities to pay only for the services they need rather than paying an employee for full-time work.

Latest Technology

Another advantage that comes with outsourcing is access to up-to-date accounting technology. Most accounting firms employ the latest accounting software and tools, facilitating efficient, accurate, and timely financial reporting.

Focus on Priorities

By delegating financial management tasks to outsourced accountants, local governments can concentrate on their primary mission of serving and supporting the community by providing essential services. By leaving accounting responsibilities to experienced and reliable professionals, municipalities can be assured that all financial and regulatory requirements are covered.

Ready to Outsource?

RBT CPAs offers outsourced accounting services to municipalities in the Hudson Valley and beyond. Our experienced professionals understand the unique factors and challenges impacting local governments. Whether you are looking to outsource your municipality’s accounting functions or seeking guidance related to tax, accounting, or audit matters, RBT CPAs is here to support you. Get in touch with our experts today to find out how we can be Remarkably Better Together.

Is It Time to Update Your PHA’s Software? Outdated Housing Software Hinders Financial Operations

Is It Time to Update Your PHA’s Software? Outdated Housing Software Hinders Financial Operations

Like many organizations, Public Housing Authorities rely on online systems to carry out a wide range of essential operations. However, PHAs using antiquated software often face a multitude of challenges and frustrations. Outdated software impedes operations, leads to delays, hinders financial processes, and increases the PHA’s susceptibility to cyber threats.

Issues Posed by Outdated Software

PHAs rely on IT systems for many crucial processes, including inspections, application management, reporting, and other necessary functions. These online processes are essential for maintaining the safety, security, and everyday operations of PHAs. However, HUD has long experienced issues due to software complications, with IT failures causing major disruptions in PHAs across the country. Reliance on outdated information technology (IT) systems and software not only causes delays and disorganization in PHAs but can also increase the risk of cyber threats and serious data breaches. For the last several years, HUD has been working towards technology modernization and increased cybersecurity.

In a report entitled “Top Management Challenges Facing the U.S. Department of Housing and Urban Development,”  The Office of Inspector General summarized the most pressing issues facing HUD in fiscal year 2025. The report discussed HUD’s continued efforts to improve cybersecurity, but also spoke about the ongoing challenges related to the use of “legacy systems.” Legacy systems refer to older or outdated hardware, software, and programs. The report states, “These legacy systems and processes present elevated risks to HUD’s IT environment and increase risk in the functionality of HUD’s key programs. Managing cybersecurity risks for legacy systems is resource-intensive and limits OCIO’s capacity to acquire and deploy the technology necessary to implement or improve critical security controls.” The report points to the difficulties HUD programs face in attempting to modernize a large number of legacy systems while operating within a limited budget.

Impact on Financial Processes and Reporting

Among the operations negatively impacted by the use of outdated software are critical financial processes. Antiquated manual processes leave more room for error and inaccuracy than modern online systems. The use of outdated software impedes budgeting and financial reporting processes, impacts the efficiency of audits, and prohibits auditors from running certain reports.

Software Options and Benefits

Modern IT systems significantly enhance efficiency and organization across financial processes and other PHA functions. A variety of software options are available to PHAs for use in both tenant accounting and financial accounting. Some commonly used programs include PHA-Web, Yardi PHA Suite, MRI Software (HAPPY and Lindsey), AppFolio, and RealPage. These platforms offer a range of benefits such as electronic document storage, paperless processing, streamlined workflows, automated processes, routine maintenance, and other features. PHAs should use the most recent, up-to-date version of the program available.

Additional Guidance

Up-to-date technology, reliable operations, and effective financial processes are all necessary for your PHA to function optimally and provide the critical services relied on by so many. For more guidance on improving financial processes within your PHA, please don’t hesitate to reach out to RBT CPAs. RBT CPAs proudly provides our accounting, audit, tax, and advisory services to HUD programs in the Hudson Valley and beyond. At RBT CPAs, we believe we succeed when our clients succeed. Give us a call today to find out how we can be Remarkably Better Together.

Is Your School District Audit-ready?

Is Your School District Audit-ready?

Financial statement audits are crucial to any organization’s financial health, and school districts are no exception. A financial statement audit provides an independent assessment of an organization’s financial statements, which in turn ensures transparency, accountability, and a strong foundation for future planning. Preparation is key to ensuring a smooth audit process and avoiding delays. Here are some ways school districts can prepare for a financial statement audit.

  1. Educate your audit committee.

Audit committees are required under NYS Education Law. Audit committees oversee the audit process. The committee acts as the primary point of contact between the auditor and the appropriate staff or departments. The committee also reviews audit findings and assists in recommendations for improvement. The Government Finance Officers Association (GFOA) makes certain recommendations for the establishment of audit committees, which can be found under the “Best Practices” section of their website.

  1. Know the regulations and requirements.

The audit committee should be familiar with the various regulations governing financial reporting for school districts set forth by the Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards Board (GASB) guidelines. This guidance is frequently updated, so districts must stay up to date with the latest updates and revisions to these standards.

  1. Understand the audit process.

The audit committee should understand the scope of the audit (what will be assessed), the timeline, and the roles and responsibilities of everyone involved. The audit committee should also understand that audit-ready means that all supporting documentation should reconcile to the trial balance before the auditor’s review. The auditor’s role is to verify accuracy, not to make adjustments. Any corrections should be identified and addressed before the audit begins to ensure a smooth and efficient process.

  1. Gather all necessary documentation.

The school district must request, collect, and organize documentation and information from the appropriate departments and staff, per the audit requirements. This includes general ledgers, detailed schedules of account balances, bank statements, invoices, receipts, payroll records, purchase orders, contracts, and other financial documents. The documentation should be easily accessible for the auditor, and all financial records should be reviewed for accuracy prior to an audit.

  1. Review internal controls.

Regular internal control assessments help to strengthen the mechanisms for preventing fraud and abuse within an organization. Internal controls include procedures for authorization, record keeping, reconciliations, and auditing. These processes must be periodically reviewed to ensure that they are achieving their objectives in preventing risk to the school district.

  1. Review prior years’ audit findings.

Ensure that corrective actions have been taken for any deficiencies identified in the prior year’s audit. This will not only reduce the likelihood of repeated findings but also demonstrate your commitment to improving your financial management practices.

  1. Communicate with your auditor and prepare for questions.

It’s important to keep an open line of communication with your auditor, maintaining transparency throughout the audit process. Make sure you disclose any changes to your financial systems or operations. Be prepared to answer questions regarding your school district’s financial procedures and processes, internal controls, documentation, operations, and personnel.

Further guidance

A financial statement audit can be a daunting and sometimes stressful event, but proper preparation can reduce the opportunity for error and disorganization. If you have any questions about the audit process for school districts, or if you need any other audit, accounting, tax, or advisory support, please know RBT CPAs is here for you. We’ve been proudly serving school districts, municipalities, businesses, non-profits, and individuals in the Hudson Valley for over 55 years. Please don’t hesitate to give us a call and find out how we can be Remarkably Better Together.

To Merge or Not to Merge: New York State Offering Increased Aid to Consolidating School Districts

To Merge or Not to Merge: New York State Offering Increased Aid to Consolidating School Districts

As of July 2024, school districts in New York State that reorganize—or merge—are eligible for financial assistance of up to 40 percent of the Total Foundation Aid Base under the Reorganization Incentive Operating Aid (RIOA) program. Unfrozen in the 2024-2025 state budget, RIOA is available to reorganized school districts for up to 14 years after merging, on a phase-out basis. New York State encourages consolidation for districts with small student populations as a solution to issues caused by low enrollment. Several districts in the state have already made the decision to merge, and more are considering the possibility.

The potential benefits of merging districts include cost savings, additional resources, expanded offerings for students, and upgraded facilities. However, many smaller districts are reluctant to merge due to concerns over loss of school identity, less individualized student attention, increased travel time, the potential for higher property taxes, and other possible consequences. In-depth studies evaluating the prospective benefits versus costs for school districts considering reorganization are necessary to determine the feasibility of potential mergers.

Potential Benefits of Merging

Cost Savings

Merging districts can result in reduced administrative and operational costs. Consolidating districts reduces the number of teachers and administrative staff required to operate the district, and fewer school buildings means less spending on utilities such as heat and electricity. Consolidating bussing systems can also help reduce transportation costs.

Additional Resources

A reorganized district benefits from the combined resources of both districts involved in the merger, including teaching staff, learning materials, and school equipment.

Expanded Programs

The funding provided through the RIOA program allows reorganized districts to develop and strengthen both academic and extracurricular programs. The new, larger districts may be able to hire more specialized instructors and offer a wider variety of educational programs. The funds can also be used to support non-academic programs such as athletics, clubs, and theater and music programs.

Facility Upgrades

RIOA funds can also be utilized to improve or renovate school buildings and grounds.

Concerns over Merging

Loss of School Identity

Communities faced with the possibility of a school district merger often fear that combining districts will lead to a loss of school identity. People may be reluctant to give up familiar school traditions, mascots, and the tight-knit communities they’ve become accustomed to.

Less Individualized Student Attention

Students, employees, and families in smaller school districts are accustomed to the personal qualities of a small school community, such as small class sizes, opportunities for parent involvement, easy access to teachers, and individualized student attention. A transition to a larger combined district may translate to a less personalized experience for students and families.

Longer Travel Time

When a merger occurs, students may need to travel further distances to school, increasing travel time and transportation costs.

Potential Increased Costs for Taxpayers

When two school districts merge, the new district may level up staff salaries and benefits to those of the higher-paying district, raising staffing costs. These higher staffing costs may result in higher property taxes for residents. Increased school transportation costs can also lead to higher taxes.

 

School district mergers present both potential advantages and disadvantages for communities in New York State, all of which should be considered by districts exploring the possibility of reorganizing. Merger feasibility studies should be conducted in order to thoroughly weigh the potential benefits versus costs for individual communities. For more information on school district reorganization, see NYSED’s Guide to the Reorganization of School Districts in New York State.

While you continue to act in the best interest of your school district, please know that RBT CPAs is here to support your district’s accounting, advisory, tax, and audit needs. Contact us to find out how we can be Remarkably Better Together.

How Do You Know If You Have a Good Fee Accountant?

How Do You Know If You Have a Good Fee Accountant?

A fee accountant is an external accountant hired by a Public Housing Authority on a contractual basis to handle the organization’s accounting responsibilities. The use of a fee accountant can improve the accuracy and efficiency of an Authority’s financial reporting, give the Authority access to specialized knowledge, and save the organization the expense of an in-house accounting team. But—not all fee accountants are created equal.

Below are some signs of a good fee accountant.

  1. Minimal (or zero) audit adjustments

One sign that your fee accountant is doing his/her job well is a lack of adjustments, posted or unposted, to the Authority’s audited financials. This indicates that the Authority’s financial data has been reported accurately and in compliance with regulations.

  1. Minimal errors in monthly financial reports

Another indicator of a good fee accountant is a lack of errors in the financial statements he/she prepares each month for the Board of Commissioners. Monthly financial reports are key to monitoring a PHA’s financial health; they should be accurate and submitted in a timely manner.

  1. Ability to meet deadlines and communicate about delays

Fee accountants need to meet several key deadlines including those regarding budget reports, monthly financial reports, and Financial Data Schedules. If delays occur, the accountant should communicate this information to the PHA.

  1. Understanding of HUD programs and compliance requirements

A good fee accountant understands the specific compliance requirements for HUD programs and keeps abreast of updates in industry regulations.

  1. Experience with PHA software programs

Your fee accountant should be familiar with the common software programs used in the management of Public Housing Authorities, such as MRI Software, Yardi, and PHA-Web.

  1. Audit preparation and readiness

Your fee accountant should have experience working with auditors and must be able to provide accurate supporting documentation to auditors in a timely manner. A fee accountant must ensure that the PHA’s books and records are audit-ready, meaning that all supporting documentation should reconcile to the trial balance before the auditor’s review. The auditor’s role is to verify accuracy, not to make adjustments. Any necessary corrections should be identified and addressed before the audit begins to ensure a smooth and efficient audit process.

  1. Communication and responsiveness

Is your fee accountant accessible and responsive when you reach out with questions or concerns? A good fee accountant maintains consistent communication with the Housing Authority as well as with auditors.

  1. Willingness and ability to help the Authority resolve issues

Finally, your fee accountant should be a helpful resource, identifying potential issues and opportunities in the PHA’s financial processes. A good fee accountant is committed to helping the PHA resolve deficiencies and other issues that arise.

As you can see, there is much more to the fee accountant role than merely completing accounting tasks. When it comes to accounting services, quality of service matters. Essential to maintaining the financial reputation and integrity of your PHA is a fee accountant who is reliable, effective, and well-versed in the specific requirements for HUD programs.

Our experts at RBT CPAs possess the specialized knowledge and skills to work with you on a per-service basis alongside your internal accounting resources or as your full-service accounting and tax department and advisor. When you partner with RBT CPAs, you can be confident in your program’s financial integrity and compliance, so you can continue to focus on your goal of providing decent and safe housing for our state’s residents. To learn more about how we can support your accounting, tax, audit, and advisory needs, visit our website or give us a call.