The audit presentation underscored the district’s strong financial position, revealing a well-managed budget with a focus on maintaining reserves for future needs. The capital reserve, an important element of the district’s financial strategy, provides a foundation for addressing facility needs as part of the long-range facility plan, which is projected to require close to $7 million. The board was advised that they have substantial funds available to initiate capital projects without requiring additional debt. This financial strategy reflects a careful balance between immediate operational needs and long-term investment in infrastructure.

In addition to the capital reserve, the district maintains a maintenance reserve of $574,684, dedicated to repairs and upkeep of existing school facilities. This ensures the district can address necessary maintenance issues promptly, sustaining operational functionality without impacting capital improvement funds. The existence of a $700,000 excess surplus further reflects the district’s fiscal responsibility, mandating its use as a revenue source in the upcoming budget to maintain consistency with prior financial strategies.

Despite the favorable audit results, the auditors highlighted several areas for improvement in financial practices. Among these were concerns related to financial planning, accounting, and reporting, specifically around the transfer of $200,000 from the capital reserve to address a $40 million project settlement. While this transfer was within legal parameters, it highlighted the need for such transactions to be anticipated in the initial budget to ensure compliance with fiscal regulations. Additionally, the auditors stressed the importance of accurate revenue posting, following New Jersey’s uniform chart of accounts, to prevent misposting and ensure precise financial records.

The conversation also touched on the intricacies of school purchasing in New Jersey, emphasizing adherence to public contract and procurement guidelines. The board was advised to verify vendor contracts, particularly with those claiming affiliation with cooperative purchasing programs, to prevent discrepancies in billing and ensure compliance with state contract programs. The topic of change orders exceeding original contract awards was also raised, prompting recommendations for improved oversight and approval processes.

Beyond financial matters, the board addressed the fiscal year 2024 audit and accepted the comprehensive financial report from the auditors. The meeting also included a request from the recreation department for use of district facilities for a holiday marketplace.

As the meeting drew to a close, there was an opportunity for public comment, though no attendees chose to speak. The board moved forward with voting on motions related to personnel and facilities. The meeting concluded without the introduction of any new or old business, save for a notification regarding a member’s absence at the upcoming session, marking the end of the proceedings at 6:31 PM.