Auditor: Ocean Township ended FY2025 with $8 million in capital reserve, excess surplus will require appropriation
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Summary
Paul Kuva of Wilcotts and Company presented the Township of Ocean School District's FY2025 audit, reporting roughly $8,000,000 in the capital reserve and an excess surplus figure (about $44,334,000) that the district must appropriate in the 2026—27 budget; the district's tentative budget deadline is March 19.
Paul Kuva, partner at Wilcotts and Company, told the Township of Ocean School District board that the audit for the fiscal year ending June 30, 2025, shows the district finished the year with a substantial capital reserve and excess surplus that must be addressed in next year's budget.
"We wound up with, like, $8,000,000 in our capital reserve," Kuva said in his presentation, adding that the district's fund balances and reserves are in generally healthy condition but that some items will require attention during budget preparation. Kuva described the audit reports members received: an Annual Comprehensive Financial Report and a smaller auditors' management report on administrative findings, financial compliance and performance.
Kuva told the board the audit also identified the district's excess surplus position. "You have exceeded that by, I think it was $44,334,000," he said, and explained that by statute the district must appropriate excess surplus back into the 2026—27 budget rather than simply retaining it.
Kuva reviewed other standard audit items, including the report's sections on fixed assets and outstanding debt, and discussed the district's share of state retirement and OPEB-related liabilities. He noted the district's proportionate share of retiree-related liabilities is not an immediate cash obligation but is part of long-term reporting and planning.
Mister Hastings, the district's business administrator, reminded the board that the budget calendar calls for the tentative budget to be adopted on March 19 and for the final budget to be presented publicly between April 24 and May 7. The administration plans to return to the board with detailed recommendations and required resolutions; the agenda included a resolution in section 9 to accept the audit as required by regulation.
The board did not record questions for the auditor during the meeting beyond clarifying remarks, and the auditor closed his report after member acknowledgments.
What happens next: the administration will incorporate the audit's findings into the 2026—27 budget work, including appropriation of required excess surplus and continued review of capital reserve uses.