Audit committee: external audit on track for February; district appealing two IRS penalties

The Riverhead Central School District audit committee reported on the district’s fiscal status and administrative filings, saying the external audit is progressing and the district expects to file in February.

Committee members said the district’s STAR application had been completed and filed with three towns — Riverhead, Southampton and Brookhaven — and that federal and state grants from prior school years are current. The committee also reported the district has received two IRS penalties for late W-3 filings and that the district is appealing each penalty.

Who attended and why it matters: the audit committee meeting of Dec. 10, 2024, was described in the Jan. 19 board meeting as having included Virginia Healy (audit committee chair and board president), Erica Murphy (vice president/trustee), Cheryl Petasich (interim superintendent of schools), Mary Anne Cartesano (interim assistant superintendent for business), Dawn Bozachowski (district clerk) and Joseph Crocco (district treasurer). The committee’s update indicates the district is current on grant administration and is addressing federal filing penalties, which could have financial implications if appeals are unsuccessful.

Other audit items noted: policy updates had been prepared for the Dec. 10 agenda (including budget transfers and capitalization policy language changes and a change to reflect a community member appointment to a committee). The committee reported being “ahead of the game” on the external audit schedule and described the district’s grant and STAR filings as current.

The board did not take additional action on the audit items at the Jan. 19 meeting; the report was informational.