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Barnegat board hears clean audit; auditors flag accounting presentation change
Summary
Independent auditors gave the Barnegat Township School District three unmodified opinions and reported a roughly $5 million fund balance, while noting a GASB 101 presentation change for compensated absences that raises reported liabilities but does not require additional cash payments.
Barnegat Township Board of Education members received a clean independent audit and an update on district finances during their January meeting. Robert Mulligan, audit manager with HFA, told the board the district earned three unmodified opinions — on the independent auditors report, internal control over financial reporting and compliance, and the state and federal programs report — and that auditors found no material weaknesses.
Mulligan highlighted an "emphasis of matter" related to GASB Statement No. 101 on compensated absences. He said the new accounting standard requires the district to present the full liability for earned but not‑paid leave, which will make the liability figures look larger in financial statements but will not change what the district actually owes under employee contracts or state law. "That does not mean you have to pay anything additional," Mulligan said.
Mulligan reported approximately $5,000,000 in fund balance at year end and said the district replenished amounts taken from capital and maintenance reserves; he cautioned that some reserves are restricted by state statute and are not available for general use. He also noted roughly $600,000 remained in the food service fund and that the district is reinvesting those dollars into meal programs.
Board President Mister Sarno thanked the business office and administration for the audit outcome and for building reserve balances in a challenging funding environment. "Bravo to everyone in our administration for another spotless audit," he said.
The presentation included the district's letter of transmittal and other contextual material the board may review in committee. Mulligan offered to follow up on any technical questions after the meeting.
What happens next: The audit will remain part of board records and inform budget planning; board members noted reserve constraints and the need to align spending with restricted reserve uses.
