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Auditors give Seaford Union Free School District a clean opinion; board hears $29.6 million fund balance
Summary
External auditors reported a clean independent opinion and outlined next steps for a required single audit; presenters reviewed $29.6 million in general fund balance, $13 million in capital reserves, and expenditure savings that improved the district's fiscal position.
Auditors for the Seaford Union Free School District told the board the district received a clean independent opinion on its financial statements and noted a separate single audit will be required because the district received more than $750,000 in federal aid. Presenter said fieldwork was completed in August but final pension figures delayed full completion until state numbers arrived.
Why it matters: A clean opinion indicates the auditors found the district's financial statements to be presented fairly in accordance with professional standards; the single audit will examine federal-award programs and must be filed with the federal clearinghouse when complete.
The presenter outlined the audit team's responsibilities and the board's role in setting accounting policies and maintaining internal controls. The auditors proposed journal entries to reflect pension updates after the books were closed and said those entries were posted.
Albert, a member of the audit presentation team, detailed revenue and expenditure variances. He said investment and interest earnings produced roughly $1.2 million in favorable variance (including capital-reserve interest), while state aid produced an unfavorable variance reported around $316,000. On expenditures, Albert reported about $4.5 million in budgetary savings across categories, with notable savings in instruction driven by lower-than-expected student program costs and salary savings from vacancies.
The auditors reviewed fund-balance composition: the district's general fund balance totaled $29,600,000; $3,300,000 of that was unassigned (about 3.99%, slightly under a 4% cap), and approximately $13,000,000 was held in a capital projects reserve. Other restricted balances noted included workers' compensation and employee-benefit reserves; a tax reduction reserve was reported at $612,000, with one year remaining under current rules.
The presentation also summarized other funds (capital projects, cafeteria fund of about $407,000, and special-purpose funds including extra-classroom activity and scholarship donations) and debt service: two outstanding bonds totaling $10,000,000, maturing in 2035.
"We're very pleased to say you got a clean opinion," the Presenter said, adding the team found no allegations of fraud during their interviews and no uncorrected misstatements. Albert said the district's reserves and expenditure controls allowed the district to generate surplus in the year reviewed.
Next steps: auditors said the single audit for federal programs will be completed in the coming weeks and filed with the federal clearinghouse. The board received the independent-auditor's report and management communications and was invited to request follow-up on any items in the management letter.
