Depew board accepts clean audit, directs $1.075 million to reserve funds

The Depew Union Free School District Board of Education on Tuesday accepted an independent financial audit that found no material weaknesses and approved transfers totalling up to $1,075,000 to three district reserve funds. The board voted by voice to accept the draft audit and to move money from the district—s unappropriated fund balance to a health insurance reserve, an employee benefit accrued liability reserve and a bus and vehicles equipment capital reserve.

Dresser & Malecki director Eric Hanley told the board the firm would issue an "unmodified opinion," commonly called a clean audit, and that the audit identified no findings in the basic financial statements. "We intend to move forward with what's referred to as an unmodified opinion— n unmodified opinion — that's a clean opinion," Hanley said.

The audit presentation showed district revenues decreased slightly for the year ended June 30, 2025, largely because of a drop in basic formula state aid, while gaming aid and modest property tax increases partially offset that decline. Expenditures rose about $1.6 million year over year, driven by general-education salary costs, technology purchases and higher utilities; a debt-service reduction from a bond payoff partially offset spending increases. Hanley said the district's total fund balance was about $18.5 million on June 30, 2025, with roughly $14.3 million restricted by legal reserves and a little over $2.2 million unassigned.

The board then voted to transfer $300,000 to the district's health insurance reserve, up to $500,000 to the employee benefit accrued liability reserve and up to $275,000 to the bus and vehicles equipment capital reserve. The three transfers total up to $1,075,000. Board President McCoyne called for the motions and members approved them by voice vote.

Hanley also told the board the district's unassigned fund balance was at the Real Property Tax Law — 1318 limit of 4 percent of next year—s budgetary appropriations, meaning the district was in compliance with that statutory cap. He said the audit tested bank reconciliations, cash receipts and extracurricular activity accounts and found no audit exceptions. "We got full cooperation and full access to the books and records," Hanley said.

The board accepted the draft report "pending that there are no material changes," language read during the motion to accept the audit. The motions to accept the audit and to transfer funds passed on voice votes.

Looking ahead, Hanley gave the board contact information for follow-up questions and noted that some club and activity accounts had been reclassified from special revenue funds into the general fund to comply with accounting standards.

The audit and reserve transfers were taken as separate motions but on the same agenda section; both were approved by the board.