Board hears clean audit, reviews $1.7M in surplus and planned HVAC grant funding
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Summary
At a board meeting, district finance staff presented a completed audit with no recommendations, reported $1.743 million in excess surplus and discussed using reserves for a gym-floor repair and a $2.0 million HVAC project supported by an SBA-linked grant; the corrective action plan will be posted to the State.
The Greater Egg Harbor Regional High School District received its completed audit and an overview of fund balances at the board meeting. Speaker 2, who presented the audit materials, told trustees the audit yielded no recommendations and that the district will post a corrective action plan to the State of New Jersey as required.
"The top line is reserved for excess surplus, 1,743,000," Speaker 2 said, then walked the board through reserve categories and planned uses. Speaker 2 said the maintenance reserve currently stands at $1,549,000 (up from $831,000 last year) and will be tapped while the district settles an insurance claim for a gym-floor project. The speaker also reported a capital reserve of $1,361,000 and said $1,000,000 of that would be applied to an SBA-linked grant that supports $2,000,000 of HVAC work at a district high school.
Speaker 2 summarized other lines: an unemployment reserve of $338,000 (down slightly from the prior year) and an unassigned fund balance of $1,931,000, which Speaker 2 noted meets the state formula (2% of the budget). When asked whether the maintenance reserve is sufficient, Speaker 2 said recent usage patterns and interest income support current levels. "I mean, last year, we actually used a 170 of it to help fund our budget when we had a shortfall," Speaker 2 said, adding that typical annual uses have been in the low six figures.
The presentation included the auditors' management report; Speaker 2 emphasized there were no audit recommendations this year. Despite that finding, Speaker 2 said a corrective action plan will be approved and signed and then posted to the State depository to meet administrative requirements.
What happens next: the board has the audit documents for review and may schedule follow-up discussion; Speaker 2 offered to present further line-by-line details on request.