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Teaneck audit shows $18.6 million in fund balance, auditors list 12 recommendations
Summary
Independent auditors presented the district—s 2023-24 financial audit, reporting $18.6 million in fund balances, major restricted reserves, and 12 recommendations including bookkeeping and contract advertising improvements.
Liz Schick, a partner at the audit firm Lurch, Vincy and Bliss, told the Teaneck Board of Education on Feb. 5 that the district closed fiscal year 2023-24 with $18.6 million in governmental fund balances and reserves.
The audit presentation explained that much of that total was earmarked: roughly $4.8 million in capital reserve, about $3.1 million in maintenance reserve, $285,000 in a tuition reserve, and an excess surplus of about $4.7 million. Schick said the district used more than $3 million of its surplus to help balance the 2024-25 budget and that a remaining excess-surcharge amount of roughly $3.4 million must be appropriated into the 2025-26 budget.
"The number looks large, but a lot of that money is already being used or designated for something else," Schick said during the presentation.
The auditors also explained that state "on-behalf" payments for pension and FICA are shown on the statements. Schick said revenues included roughly $21.5 million recorded as state on-behalf pension and FICA contributions and that the audit follows GAAP presentation rules.
Nut graf: The audit confirms the district's overall reserve position while warning that much of the balance is restricted or already committed. The auditors also flagged internal-control items the district must address; board members were told a corrective-action plan would be brought forward for approval.
Among the audit—s 12 recommendations, Schick listed several in financial planning and reporting: maintain a payroll agency deduction ledger; reconcile balance-sheet accounts and subsidiary ledgers; clear reconciling items on the district—s warrant account; and prepare year-end compensated-absence liabilities. Purchasing and contracting recommendations included keeping state and cooperative contract documentation available for audit and advertising awards for professional services when contracts are executed. Capital-asset and project accounting items called for timely recording of capital projects and updates to the district—s capital-asset schedules and depreciation.
Board members asked whether recommendations would be included in the corrective-action plan. Schick said yes, and multiple trustees discussed timing for the corrective-action motions expected at a subsequent meeting.
Ending: Trustees and staff said they will circulate the full audit and the auditors— corrective-action plan ahead of the board—s next business meeting so the board can vote to accept or ratify required actions.
