The Triton Regional School Committee on May 21 received and filed the district's FY2024 independently audited financial statements and heard a detailed update on the district's budget standing for FY2025.

The independent auditors issued a clean opinion on the FY2024 financial statements, and no federal award findings were reported, Finance presenter Dave Bertolini said. Committee members then reviewed a year‑to‑date general fund report that showed a headline deficit of about $710,000 as of May 1, driven mainly by nearly $1.97 million in non‑salary overruns that were partly offset by $258,000 in salary underruns.

The audit and budget items matter because they frame the district's ability to carry reserves into the new fiscal year and inform any request to use stabilization funds. "The financial statements present fairly in all material respects in accordance with generally accepted accounting standards," Bertolini said, describing the auditors'clean opinion. He also summarized the audit's three deliverables: the financial statements, the federal award expenditures report (with no findings), and the governance/management letter (no major issues noted).

In a longer explanation of the budget position, staff said several technical and timing issues exaggerated the year‑end shortfall. The district's accounting system change created an over‑encumbrance of roughly $267,000 when payroll deductions were posted twice; certain revolving and user‑fee balances (about $125,000) and preschool tuition charges could be adjusted at year end; and state reimbursements such as circuit breaker and transportation are expected to provide additional offsets in the months after June 30. When those reasonably expected offsets are included, staff said the net deficit is nearer $85,000. The district currently holds about $1,720,000 in its stabilization account that could be used if necessary.

Committee members discussed specific cost drivers behind the overages, including increased out‑of‑district special education placements and higher transportation and natural gas costs. Bertolini and other staff emphasized that some costs (for example, certain special education placements) are already budgeted into next year's FY2026 projections, and that knowing the May position earlier would have allowed different midyear steps. "On paper we're showing a deficit of $710,000," Brian (staff member) said; "if you net those [reimbursements and offsets], the budget deficit is really more like $85,000."

Separately, committee members and staff discussed longer‑term liabilities detailed in the audit and valuation reports. Bertolini reviewed two retirement‑related items: the district's participation in the Essex County Retirement System and the district's other post‑employment benefits (OPEB) liability for retiree health insurance. He said Triton's funded ratio in the Essex County retirement system is about 63 percent and that the county system projects full funding in the mid‑2030s, which would reduce annual retirement bill pressures. By contrast, the OPEB valuation (prepared by KMS and included with the audit materials) shows an actuarial liability of roughly $70,000,000 for retiree health benefits in today's dollars; that number represents the projected total cost of benefits earned to date and is subject to actuarial assumptions and contribution policy. Bertolini warned that the district has not historically funded OPEB on an actuarial basis and said the state may eventually require more systematic funding, similar to past retirement reforms.

Actions recorded: the committee moved, seconded and voted to receive and file the FY2024 audited financial statements and later moved, seconded and voted to receive and file the May 1 year‑to‑date general fund expenditure report. The motions and votes were recorded on the meeting record as passed.

Committee members said the finance subcommittee will review final year‑end numbers in early July and bring a recommendation if use of stabilization is needed. The committee scheduled an additional review before the June meeting so members can act if final offsets change the net position.

The district will also continue to monitor large long‑term liabilities (retirement and OPEB) identified in the audit and related valuation reports, and staff said they will return with further analysis and options in coming months.