The Rockaway Township Board of Education on Dec. 11 received an auditor's report showing the district in sound financial position and heard updates on a recent cybersecurity incident and a contract transportation failure.

Man Lee, the firm's auditor, told the board the district's "overall fund balance is approximately $16,380,000," highlighting restricted reserves, encumbrances and capital and maintenance reserves. Lee detailed enterprise fund results and said the district reported a current-year excess surplus of $2,200,000 intended to support the 2627 budget cycle. He offered one minor recommendation: improve monthly catering invoice reporting from the food-service management company.

The audit presentation preceded a business-administrator report that explained a separate technology breach. Megan Slam, the district's business administrator, said forensic work on an older server showed files were encrypted but that investigators found "no evidence that any staff, student, or financial information was exposed." Slam said the affected server had been isolated, the district rebuilt a more secure environment, and insurance will largely cover forensic and recovery costs.

Dr. Richard Corbett, the superintendent, also briefed the board on operational impacts this month: on Dec. 2 contractor First Student failed to provide transportation on three district routes, a problem the district raised directly with the contractor. Corbett said district leaders were told the failure resulted in part from drivers receiving inaccurate information via social media and that First Student provided an action plan the district will monitor.

The board approved standard finance and personnel recommendations by roll call after the audit presentation. The business office will post the auditor's comprehensive report on the district website and submit it to the New Jersey Department of Education as required.

What happens next: the district will monitor First Student's corrective actions, finalize any decisions on reserve deposits when building the 2627 budget, and continue work to harden systems and complete remaining forensic remediation.

Quotes from the meeting:
"The overall fund balance is approximately $16,380,000," Man Lee, auditor, said while reviewing the audit highlights.
"We have no evidence that any staff, student, or financial information was exposed," Megan Slam, the business administrator, said about the cyber incident.

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