The Roslyn Public Schools ended the 2005-06 school year with a healthy fund balance, putting the district in a solid financial position in the new fiscal year.

That's the report of Joseph Dragone, interim assistant superintendent for business of the Roslyn School District.

The district ended the year with an undesignated and unreserved fund balance of $1,274,646, said Dragone at the board of education's meeting on September 21.

"We met all obligations for 2005-06 with 2005-06 funds," Dragone told board members. He added that the fund balance is an indication of a better financial position now than the district was in a year ago.

The undesignated and unreserved fund balance comprises budgeted funds that were not expended during the course of the fiscal year or committed to meeting specific financial obligations (for example, lowering the tax levy or repaying debt).

State law, district officials note, permits school districts to maintain a fund balance of up to two percent of the annual school budget. This, they claim, is also a highly recommended fiscal practice under accounting standards for schools. The fund balance is important because it provides the school district with more flexibility in its budgeting, thereby avoiding "spikes" in the tax levy from year to year.

"The undesignated fund balance is not a surplus," Dragone also explained at the meeting. "It is a healthy sign of the district living within its means. When expenses grow faster than expected, we can spend a little more of the fund balance to meet our obligations without placing burdens on the next year's budget. When expenses are less than anticipated, we may build up long-term reserves to meet future liabilities or apply the fund balance to reduce the following year's tax levy."

Also according to school district officials, a strong fund balance is a significant factor in maintaining the district's high credit rating, thereby lowering the cost of borrowing.

The report of the district's independent auditor for 2005-06, anticipated later in October, will provide comprehensive details about the district's financial condition.