Monroe‑Woodbury board accepts clean audit; district transfers $19.5M toward capital project

The Monroe‑Woodbury Board of Education voted Nov. 5 to accept an external audit for the fiscal year ending June 30, 2025, after auditors from PFK O'Connor Davies issued an unmodified ("clean") opinion on the district's financial statements.

"We've issued what's known as a clean opinion or an unmodified opinion on the district's financial statements," audit partner Scott Olling told the board, adding that the opinion means the auditors believe the statements "fairly present what happened in the district from a financial perspective for the year that ended 06/30/2025." The motion to accept the audit was made, seconded and approved by voice vote.

Olling said the district's general-fund revenues came in at about $233.9 million compared with the budgeted $222.6 million, driven primarily by stronger-than-expected state aid and higher interest earnings. The auditor reported state-aid receipts of roughly $93.6 million against a budgeted $88.8 million and said interest income exceeded plan by about $4.7 million to $5.0 million. The district's property-tax levy and STAR payments together totaled about $131.4 million.

Total general-fund expenses were about $218 million. Major categories included instruction (just under $115 million), pupil transportation (about $20 million), and employee benefits (just over $53 million). Olling said benefit-cost increases this year stemmed largely from higher health-insurance costs and higher state pension contribution rates.

Olling emphasized that the district transferred roughly $19.5 million from the general fund into the capital projects fund as authorized by voters. That transfer, which will reduce future borrowing needs for the district's voter-approved capital program, contributed to a $5.9 million decline in the general-fund balance (from $60.3 million at the start of the year to $54.4 million at year end).

A breakdown of the district's fund balance shown in the audit, Olling said, includes about $36 million in restricted reserves (tax certiorari reserve ~$6.7 million; workers' compensation ~$1.6 million; TRS-related reserves ~$5.4 million; other reserves for unemployment, property loss and accrued employee-benefit liabilities), about $5.6 million in assigned purchase orders, and roughly $8.2 million unassigned (free) fund balance. Olling noted the unassigned balance represents about 3.5% of next year's budget, under the 4% statutory limit.

Board members asked about potential pension-rate increases if market returns soften. "You would have to talk to the actuaries of the system," Olling replied, explaining the retirement systems use multi-year smoothing and that lower returns over time can lead to higher employer contribution rates.

The board's acceptance of the audit will be filed with the New York State Education Department as required.