State monitor outlines tighter fiscal controls; board debates costly forensic audit and repayment schedule

The state monitor told the Nutley Board of Education that new purchasing and budget controls put in place over the last year left the district “in a position to end the year with a positive balance,” but board members and residents debated whether to fund a proposed outside forensic audit and discussed a multi‑year state repayment that will affect next year’s revenues.

Miss Magus, the state monitor, said the administration and business office tightened procedures including requiring written approval for transfers of funds, issuing purchase orders before orders are placed, and requiring two or more quotes for purchases over $7,900 or use of a co‑op or New Jersey state contract. She said those steps and closer monitoring reduced some costs — for example, lunch coverage costs were about $80,000 lower than the prior year — and have left the district with a positive balance for fiscal 2024–25.

Why it matters: the board must balance repairing internal controls with program needs. The monitor said she would not recommend using limited program dollars to pay for a forensic audit that, in her view, was unlikely to provide new information commensurate with its cost. That put her at odds with some members of the public who urged the board to pursue an audit…