Board accepts audit, district outlines reserves and controls

The Hopewell Valley Regional School District board voted to accept the district’s annual financial audit for the 2024–25 year after administrators reported an unmodified opinion from the auditors.

According to the board’s presentation, the district’s audited fund balances total approximately $14,966,000. That figure includes $735,000 in encumbrances carried forward, $2.7 million already budgeted into the 2025–26 budget, a $100,000 maintenance reserve available for noncapital repairs, and a capital reserve near $7.6 million (minus an anticipated $62,000 planned use). District officials said the amount they consider a true emergency reserve — money that could cover immediate, non-referendum needs that might prevent schools from opening — is about $2.8 million.

The business administrator noted constraints on using reserves: tapping capital or fund-balance reserves after the audit requires Commissioner of Education approval and proof of necessity. Board members discussed health-benefit cost pressures and the impact of benefits on the budget.

Auditors made one minor recommendation: improve procedures for student activity accounts to ensure timely deposits and compliance with the district’s 48-hour deposit rule. Administrators also said auditors recommended that schools not route charitable donations through student activity accounts; instead, donations should go directly to charities or be managed by PTOs.

Board members moved and seconded the motion to accept the audit; the roll-call vote recorded affirmative votes from members present and the motion carried.

What’s next: administrators said the audit is posted on BoardDocs and that staff will continue to reeducate building-level staff about student activity account procedures and finalize responses to auditor recommendations.

(Reporting based solely on the board meeting transcript.)