Jim Moore / January 2, 2026
A newly released financial audit by New York State Comptroller Thomas P. DiNapoli has drawn scrutiny to the way the Steuben County Legislature manages its reserve funds, raising questions about fiscal policy and long-term planning at the local level.
According to the audit, county officials did not “effectively manage” Steuben County’s fund balance, particularly in the general and road funds, the critical reservoirs of cash that help stabilize budgets and pay for infrastructure and emergency needs. As of December 31, 2024, the audit reports the county held $103.4 million in unrestricted general fund balance, roughly 48% of the next year’s approved budget, and $15.5 million in its road fund, equal to about 53% of that fund’s upcoming budget.
The audit further notes county leaders lacked a formal written policy on fund balance targets and did not adopt updated multiyear financial or capital plans which are tools generally encouraged by best practices in municipal financial management to ensure stability and transparency over time. Such plans can help local governments anticipate revenue changes, infrastructure costs, and unexpected challenges, like economic downturns or public health emergencies.
Comptroller DiNapoli has consistently emphasized the importance of transparent financial planning in government. In separate reports on municipal fiscal conditions, his office has urged local governments to adopt clear reserve policies and integrate them into broader financial strategies underscoring that reserves should balance immediate liquidity with prudent long-term planning.
County Pushes Back, Cites Pandemic Challenges
In its formal response, Steuben County officials acknowledged the audit’s recommendations and noted that several have already been adopted. However, county leaders strongly disputed the central finding that they failed to manage fund balances effectively.
County representatives argued the audit did not sufficiently account for the ongoing effects of the COVID-19 pandemic on operations and budget pressures. They said pandemic-related stressors, including sudden changes in public health costs, service delivery demands, and fluctuating state and federal reimbursements, significantly impacted fiscal decisions and complicated long-term forecasting. Local officials maintain that maintaining higher general fund reserves helped the county absorb pandemic-related uncertainties and service demands.
Steuben County also noted that the update of financial planning practices, including the adoption of written multiyear planning frameworks, is underway as part of a broader effort to enhance fiscal oversight and transparency.
