Ossining auditors issue clean opinion; district uses $16.3M of fund balance for capital projects

An external audit presented to the Ossining Union Free School District Board of Education on Nov. 5 found no material misstatements and resulted in an unmodified opinion dated Oct. 8, 2025.

"Im happy to say that we issued an unmodified opinion on the financial statements," said Mark Cowen, director at PKF O'Connor Davies, who oversaw the districts audit. Cowen said auditors found no material weaknesses, no instances of suspected fraud, no disagreements with management and no irregularities or illegal acts.

The audit review covered internal controls, payroll, cash receipts and disbursements and journal entries, Cowen told the board. Two minor items in the management letter were described as control deficiencies common across school districts: an inactive special-purpose fund account and missing receipts for extra-classroom activities.

On the fiscal numbers, Cowen said the district recorded higher-than-budgeted revenues and savings on expenditures, but used a portion of restricted reserves to pay for capital projects. "You started at $62,900,000. You used in 20 25, $16,300,000. So your ending fund balance is $46,600,000," he said. The principal driver of the decline was a transfer from general fund reserves into the capital fund to pay for districtwide capital projects approved by voters.

Cowen noted the districts unassigned fund balance is at the New York State limit of 4 percent of the next year's budget. He also reported the districts adopted 2025-26 annual debt service is about 2.6 percent of the budget. Board members and auditors discussed timing for debt service tied to planned borrowing; Cowen said new debt service associated with recent capital work is not expected to be reflected in full until about 2030 and that bond anticipation notes are likely in the interim.

Board members thanked the audit committee and the finance office for their work. "This allows us to continue to support these programs through the end," said Superintendent Mary Fox Elter, referencing an assigned reserve the board created to replace lost grant revenue.

No formal vote on the audit report was recorded in the public transcript; the presentation concluded with a question-and-answer period and board discussion.