Auditors presented the district’s 2025 financial audit and issued an unmodified — commonly called a clean — opinion on the financial statements. The audit report noted no material weaknesses and no significant deficiencies in internal control.

Why it matters: A clean opinion indicates auditors found the district’s financial statements fairly presented in all material respects. The district reported higher-than-expected revenues, expenditure savings and an increase in fund balance that will affect the 2026 budget.

Carolyn Koff, the external auditor, told the board that the district originally planned to use $4.25 million of fund balance to balance the budget but increased that projected use to $4.75 million during the year because of adjustments. The district instead posted a $1.79 million actual surplus and a $6.54 million budgetary surplus; the agency’s prior-year fund balance of $25.52 million rose to $27.31 million at year end. Koff said the revenue surplus included about $3 million driven by higher interest earnings and that the district realized $3.49 million in expenditure savings across categories.

Koff reviewed fund-balance components. The restricted category totaled about $18.89 million. The district plans to use $1.1 million of restricted funds for subsequent year expenditures and anticipates $3.55 million designated for the 2026 budget. The auditors also reported debt activity: the district redeemed a $25 million BAN (bond anticipation note), issued a new BAN of $35 million and issued a new bond of $12.3 million to fund voter-approved capital projects.

Board members asked how the district would reduce its unassigned fund balance if it rises above the New York State limit (4% of the subsequent year’s budget). Koff explained that funds could be moved into various restricted reserves or used for future capital projects, subject to applicable limitations and voter approvals where required.

No formal board action was taken on the audit report itself; the auditors presented the findings and answered board questions.