Independent auditors give Hendrick Hudson CSD unmodified opinion; district ends year with $30.3 million in general fund balance

HENDRICK HUDSON CENTRAL SCHOOL DISTRICT — External auditors from PKF O'Connor Davies told the Hendrick Hudson Board of Education on Oct. 8 that the district received an "unmodified opinion" on its 2025 financial statements and ended the year with a general fund balance of about $30,304,062.

The auditors, represented by partner Chris Koff and manager Claudia Legau, said an "unmodified opinion" is the highest level of assurance their firm can provide and noted the district finished the year with stronger-than-budgeted revenues and lower-than-expected expenditures. The presentation also highlighted restricted reserves set aside to cushion the district against the loss of a large taxpayer and a multi-step plan to reconcile capital-project and cafeteria accounting.

Why it matters: An unmodified opinion means the auditors found the financial statements fair under U.S. generally accepted accounting principles. The district's larger fund balance and restricted reserves give administrators options as they plan for future years amid uncertainty about state and federal education funding.

PKF said the district closed the year with nearly $30.3 million in general fund balance and a $32 million total across governmental funds when smaller, restricted funds are included. Auditors credited the outperformance largely to higher-than-expected interest earnings and sales-tax distributions, plus conservative budgeting on the expenditure side. On the expenditure side, operation and maintenance and staffing lines came in under budget, and savings in IT maintenance and licensing were cited as contributors to the favorable variance.

The report showed the district used some prior surpluses during the year but ended with an increase in overall fund balance rather than the planned drawdown. Of the general-fund total, auditors identified about $1.7 million in a repair reserve, roughly $700,000 set aside for ERS/TRS-related needs, and a $16 million stabilization fund established after the Indian Point closure; the unassigned portion was about $5.9 million, equal to roughly 6.6% of the budget and above New York State's commonly cited 4% guideline.

The auditors noted a $475,000 accounting deficit shown in the capital projects fund arising from short-term financing (bond anticipation notes) that is expected to convert to permanent financing; the district reported $1.3 million in associated bond proceeds that will reverse the accounting deficit when recognized.

PKF also summarized district debt and amortization: about $19 million outstanding, with nearly 75% of principal scheduled to be paid down within 10 years because the district used shorter-term amortization rather than long 30-year debt.

Board members asked specific follow-up questions about reconciling fund-balance figures across slides and written schedules. Trustee Mills asked how the $30.3 million general-fund number related to a $32 million total shown elsewhere; auditors and business-office staff explained the larger figure includes smaller, restricted non‑major governmental funds such as special aid and school-lunch balances.

On next steps and outstanding items, PKF recommended the board follow up on corrective-action items in the management letter, close out old capital-project accounting lines once permanent financing is in place, and resolve longstanding cafeteria-account balances. Business-office staff said they are performing a forensic review of capital-project lines and hope to use roughly $1.5 million of remaining capital-related funds in budget planning, but that final allocation depends on the forensics and board approval. The business office said reconciling cafeteria balances will require hands-on review of prior deposits and transactions; staff said they hope to complete that work by year-end but did not guarantee a firm deadline.

Auditors also noted a timing pressure: federal compliance guidance for the single-audit component had not been released by the U.S. government at the time of the district's audit, so the single-audit compliance report must be issued separately when those requirements arrive. The auditors reported no fraud or illegal acts identified during their audit procedures and said correcting journal entries proposed during the audit were accepted by management.

Superintendent remarks and board response emphasized appreciation for the business office's work. Superintendent Trombley thanked auditors and the business office for completing the audit on a compressed schedule and for clear communication with the community.

Ending: The board did not take a separate vote to accept the audit presentation during the excerpted transcript; the auditors and business-office staff said they would return for any follow-up and noted PKF is available to answer questions over the year.