External auditors give Cornwall Central a clean opinion; discuss fund-balance limit and federal grants

EFPR Group partner Douglas Zimmerman told the Cornwall Central School District Board of Education on Sept. 24 that the firm issued an unmodified — commonly called a “clean” — opinion on the district’s fiscal 2024–25 financial statements and its single-audit of federal programs. Zimmerman said the auditors reviewed internal controls, tested federal-program compliance and examined extracurricular activity funds and found no material weaknesses or instances of noncompliance. “The results of all those various tests indicated that there were no instances of noncompliance or other matters that needed to be reported under government auditing standards,” Zimmerman said. The report said the district received about $1.7 million in federal funds this year and that auditors tested major programs in the special-education cluster, including Special Education Grants to States and preschool grants, under the federal Uniform Guidance (single-audit) requirements. Zimmerman also noted a state rule limiting undesignated general fund balances to 4 percent of the next year’s budget; Cornwall Central’s balance measured 3.54 percent, which he said complied with the rule. Board members used the presentation to ask about fiscal options if a district exceeds that 4 percent figure. Zimmerman described two common responses he has seen: increasing designated reserves or allocating undesignated funds into the next fiscal year’s budget to reduce tax pressure, and he said districts that remain above 4 percent should present a plan to the State Education Department to return to the limit over time. Board members and the district’s business office staff also discussed longer-term cost pressures affecting budgets, including rising health-care costs and potential increases in transportation costs tied to electric-bus conversions. The auditor said some districts are seeing double-digit year-to-year health-care increases and that electric-bus transitions can drive large future capital and operating expenses. No board action was taken; the presentation was informational and followed by board discussion and questions.