Piscataway audit shows sound finances as district eyes 2026–27 budget pressure from health benefits

An external auditor told the Piscataway Township Board of Education on Dec. 11 that the district’s annual financial statements received an unmodified opinion and that its fiscal position is generally sound, though officials flagged cost pressures ahead of the 2026–27 budget cycle.

"We have issued an unmodified opinion on your financial statements," auditor David Ganon said, adding that the district met the Dec. 5 filing deadline and that the underlying data are in "excellent condition." Ganon said the general fund finished the year with $64.8 million in fund balance, down about $2.4 million from the prior year, and that roughly $26 million of that total is a restricted capital reserve.

The audit presentation also noted a maintenance reserve of $6.5 million, an emergency reserve of $1 million, encumbrances of roughly $10.8 million (largely construction-related) and an excess surplus of $6.6 million that state rules require the district to use in the 2026–27 budget. "Out of that amount 26 million is restrictive capital reserve," Ganon said. "At the end of the year the general fund had $64.8 million of fund balance which was a slight decrease from the prior year 2.4 million."

Board members were briefed on how much of the balance is restricted and how much is available for general purposes. "The amount you have to use in 26–27 is required by law," the board president added in response to a question about the $6.6 million figure.

Officials also summarized other funds: preschool education aid of about $8.8 million will be used in the coming year; the food-service fund held about $1.2 million in assets but only about $260,000 was classified as unrestricted because much was invested in capital equipment; the district reported zero bonded debt. Ganon said the district had earned an independent review award from the International Association of School Business Officials for an eighth consecutive year.

District administrators said they expect the bound audit report to be issued and distributed within about a week, after a late federal compliance supplement delayed final printing. A budget-preview briefing for 2026–27 is scheduled for January, the fiscal planning committee reported. Board leaders warned that health-benefit expenses are trending upward and will be a significant driver of next year’s budget discussions.

What this means: the audit confirms the district’s accounting presentation and identifies reserves the board may use for near-term budget planning, but rising benefit costs and other pressures could require difficult choices or additional revenue strategies when the board reviews the 2026–27 budget next month.