The audit presentation by Mike Garcia of Ford Scott Associates brought to light two notable issues for the district’s financial management. The first was a surplus in the Food Service fund, which exceeded federal guidelines. Garcia advised the board to create a structured plan to spend down the surplus funds. The second issue involved the Community School fund operating at a $134,000 deficit. While efforts were underway to address this deficit, it was acknowledged that resolving it would require time, potentially a couple of years.

Board members were concerned about the financial implications of these issues and questioned Garcia about the timeframe and allowable expenditures for these funds. Garcia emphasized the importance of adhering to federal guidelines to maintain compliance, highlighting a broader context where nearly 90% of school districts in New Jersey face similar challenges with surplus management.

The meeting also delved into the general fund’s budgetary aspects. The school district had increased the local tax levy by the maximum allowable 2%, translating to an additional $269,000. Despite this, the district faced a significant reduction in state aid, which decreased by nearly $1 million from the previous year. This decline in state aid presented a major hurdle for budget planning, with board members expressing concerns about crafting a sustainable budget amid dwindling surpluses and the elimination of COVID relief funds.

Further complicating the financial outlook, the fund balance as of June 30th showed a decrease of approximately $354,000 from the previous year, attributed to the use of surplus funds to balance the budget. The board discussed various components of the surplus, including capital reserves and funds earmarked for specific purposes such as repairs and maintenance. The unassigned fund balance was noted to be below the 2% threshold.

In addition to the fiscal discussions, the board addressed potential enhancements to the food service program. Suggestions included charging some utility costs to the food service fund and enhancing the menu with extra healthy options once a month, provided they met nutritional standards.

Beyond financial matters, the meeting touched on the significance of community engagement and district goals. A board member encouraged public input on enhancing relationships between the school district and the community, stating a willingness to consider successful initiatives from other schools. The board expressed a strong desire for community involvement, providing guidance on how the public could submit suggestions.

The board also recognized student achievements, highlighting several students for their exemplary behavior and contributions in their classrooms. The acknowledgment of these students underscored the district’s emphasis on character traits such as respect and kindness within the school community.