A significant portion of the meeting was dedicated to the audit report, which detailed discrepancies in the district’s financial practices. The audit, conducted by Mr. Lurch, covered the fiscal year ending in 2425 and revealed that the district’s surplus had declined by nearly $2 million, with the current budgetary balance standing at approximately $5.3 million. This includes an unassigned fund balance earmarked as a potential rainy day fund. The audit also highlighted a decrease in both the capital and maintenance reserves, reflecting withdrawals for future projects.

One of the critical audit findings was the lack of certification signatures on payroll processing documents, a statutory requirement to ensure financial accountability. This lapse raised alarms about the district’s internal controls, as certain months lacked proper certification, leading to questions about compliance with legal and procedural standards. Additionally, the audit scrutinized the payroll agency account, uncovering discrepancies in bank reconciliation and suggesting possible manipulation to achieve a zero balance. These issues were attributed to a change in payroll providers and the introduction of a self-insured medical reimbursement plan, which complicated the district’s financial framework.

The absence of a payroll deduction ledger further compounded these problems, leading to delayed identification of financial discrepancies. This ledger is important for tracking payroll deductions, such as federal and state withholdings and pension contributions. The district’s failure to implement this ledger resulted in complications during audits, highlighting a need for improved financial management and monitoring.

The audit also raised concerns about the handling of contracts, noting a resolution passed without specifying the award process, which called into question the transparency and compliance with procurement protocols. Additionally, discrepancies were found in capital assets reporting, with significant amounts misclassified, impacting the district’s financial statements.

Beyond the audit, the board discussed preparations for a referendum aimed at addressing infrastructure needs and school overcrowding. A detailed report outlined plans for reopening a school as a 345 institution, identified as the most effective solution following community engagement. The potential referendum projects have already secured over $20 million in state aid, offering substantial financial backing for the proposed initiatives. The board emphasized the importance of partnership with the township to ensure the project’s success.

The meeting also included reports from student representatives, who shared updates on recent school activities, including a winter concert, charitable initiatives, and recognition of student achievements. The robotics team received media attention for their innovative work, while both elementary schools engaged in festive activities and community support projects.