Steuben County has released the New York State Comptroller’s Financial Management Audit and issued a response outlining both actions taken by the county and areas of disagreement with the audit’s conclusions.
County officials said they cooperated fully with the Office of the State Comptroller during the audit process and appreciated the guidance provided by auditors. As a result of the review, the Steuben County Legislature has already adopted several changes to strengthen financial oversight, including revisions to fund balance and reserve policies, clearer rules governing the use of reserves, and reinforced capital planning and earmarking practices.
However, county leaders said they respectfully disagree with the audit’s primary finding that the county did not effectively manage its fund balance.
In its response, the county pointed to several factors it says contributed to higher-than-expected fund balance levels during the audit period. Officials cited a sharp and unexpected increase in sales tax revenue in 2021 and 2022 as the economy rebounded from the COVID-19 pandemic, along with higher interest earnings beginning in 2022 due to market conditions and improved investment practices.
County officials also said long-standing and post-pandemic staffing challenges led to a higher number of vacant positions, which in turn reduced salary and benefit expenditures below budgeted levels. Steuben County said it has since adjusted its budgeting approach by reducing how vacant positions are funded in order to limit future fund balance growth.
The county also noted that a significant portion of unbudgeted revenue during the audit period consisted of restricted or one-time funds, including approximately $18 million in federal American Rescue Plan Act funding and an $8.3 million agreement related to the 8-Point Wind project. Officials said those funds were earmarked for specific purposes such as pandemic recovery, infrastructure, road repairs, and broadband expansion, and were not available for general operating use.
Officials further emphasized that property tax increases remained well below the state tax cap throughout the audit period. The county reported that its tax levy decreased in both 2022 and 2024, and that the average tax rate declined by more than 14 percent between 2021 and 2024.
County leaders said records show active management of fund balance, including a reduction of more than $4.4 million in unassigned general fund balance in 2024, and enhanced reporting practices adopted in 2025 to improve transparency and oversight.
In its statement, the county said maintaining a healthy fund balance is critical for managing more than $276 million in annual expenditures, funding mandated services, and responding to emergencies. Officials said reserve funds allowed the county to absorb more than 4.4 million dollars in storm-related costs following Tropical Storms Fred and Debbie without raising taxes or issuing new debt.
Steuben County concluded by reaffirming its commitment to fiscal responsibility, transparency, and collaboration with oversight agencies, while maintaining that the audit period reflects prudent financial management under extraordinary economic conditions.
The full audit is available through the Office of the State Comptroller.
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