Chappaqua audit shows stronger reserves; board approves consent agenda including rebid directives

The Chappaqua Central School District received an unmodified (clean) audit opinion and reported growth in its savings account, and the Board of Education approved a broad consent agenda including directives to rebid several procurement items, the district's external auditor said at the Oct. 8 meeting.

The audit presentation, delivered by Scott Olling, partner at PKF O'Connor Davies, reported that the district ended the 2024–25 fiscal year with a general fund balance of roughly $21.4 million, an increase of just over $2.0 million from the prior year. "We provided an unmodified opinion," Olling said, adding that the financial statements "fairly present what happened in the district for the year." He also noted the district's AAA bond rating, calling it "highly unusual."

Olling outlined key figures from the general fund: total revenues slightly above $140 million, expenditures about $137.3 million and restricted reserves for specific purposes (including tax certiorari, employee benefit accruals, retirement rate smoothing, capital projects and debt service). Unassigned fund balance—the portion New York law limits—was reported at $5.7 million, at the statutory maximum of 4% of next year’s budget. Olling told the board the district has reduced its reliance on appropriated fund balance to balance budgets compared with prior years.

The auditor also described a delay in issuing a federal compliance opinion because the U.S. Office of Management and Budget had not finalized the 2025 compliance supplement; he said the audit team had completed the work but could not issue that specific report until the supplement was final. He called the management-letter issues "minor," noting two administrative items in scholarship/memorial funds and a late deposit in a high school extracurricular account. Olling also reported that the district is owed about $273,000 from New York State for summer special-education programs from prior years, and that district staff are pursuing the receipts with the state.

At the meeting the board approved routine business by a single motion covering items 5.1–5.19 on the agenda. Among those consent items, board members and staff discussed and then approved taking the following next steps: - Reject the responses to a fundraising services request for proposals (RFP) and issue a new RFP tailored to district needs; district staff told the board that none of the original responses matched the services the district sought. (Consent item 5.15.) - Reject two bids for painting services because they did not meet New York State prevailing-wage requirements and one lacked the required insurance; staff said the district will rebid with clarified specifications. (Consent item 5.18.) - Enter a cross-contract to participate in a regional vehicle purchasing bid run by Nassau BOCES for procurement of trucks, vans and similar vehicles. (Consent item 5.19.)

The board also approved routine minutes and personnel items presented earlier in the meeting and accepted a change order from Neighbor Electric Corp. (item 7.1). Votes on the minutes (items 3.1 and 3.2), instructional and noninstructional recommendations (4.1 and 4.2), the consent agenda (5.1–5.19) and the Neighbor Electric change order were moved, seconded and recorded as approved.

Why it matters: The audit's clean opinion and the district's AAA rating are indicators of strong fiscal stewardship that can lower borrowing costs for upcoming capital projects. The director of finance and the auditor both emphasized that the district has reduced its use of one-shot fund balance to balance operating budgets, which board members and staff described as a positive trend for long-term fiscal stability.

What the board directed next: Staff were asked to reissue the fundraising RFP with revised scope and to rebid the painting work with clearer wage and insurance requirements. The district will continue to pursue outstanding state reimbursements for summer special-education programs and will issue the federal compliance opinion when the OMB supplement is finalized.

Quotes from meeting participants "We provided you something that's called an unmodified opinion, which is also known as a clean opinion," Scott Olling said while presenting the audit. "That basically says that we believe the financial statements fairly present what happened in the district for the year." He later noted, "The school district has a AAA rating. That is highly unusual."

Votes at a glance - 3.1 Accept minutes of 09/17/2025 board meeting — Approved (motion moved/seconded). - 3.2 Accept minutes of 10/01/2025 work session — Approved (motion moved/seconded). - 4.1 Instructional recommendation (as presented) — Approved (motion moved/seconded). - 4.2 Non-instructional recommendation (as presented) — Approved (motion moved/seconded). - 5.1–5.19 Consent agenda (includes consent to reject fundraising RFP responses and to rebid painting work; participation in Nassau BOCES vehicle procurement) — Approved in single motion. - 7.1 Acknowledgment of change orders with Neighbor Electric Corp. — Approved.

Meeting context and next steps The audit presentation followed the superintendent and student reports and preceded committee reports. Board members said they expect staff to return with revised procurement documents and with follow-up on the outstanding state reimbursements. The district also noted that a more detailed audit report and the auditor's management letter will be available to the public once the federal compliance supplement is finalized and related documentation is complete.

(Reporting based on the Oct. 8, 2025 Board of Education public meeting and the audit presentation by PKF O'Connor Davies.)