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Audit: district posts modest excess revenue and healthy capital reserve; auditor flags student-activities deposit timing
Summary
The district's FY25 audit shows roughly $223,000 in excess revenue, an end-of-year fund balance around $3.49 million and a capital reserve of about $1.365 million; the auditor made one formal recommendation to improve timely deposits for student-activities funds.
An external auditor presented the Hardyston Township School District audit for the 2024'25 fiscal year at the Jan. 6 meeting, reporting modest excess revenue, established reserve balances and one formal internal-control recommendation.
Key figures presented by the auditor (Heidi): local revenue ended $145,000 above budget; state revenue was about $97,000 above budget; overall excess revenue was "a little under $223,000." Actual expenditures (reported near $13.34 million) left unexpended funds of roughly $835,000 at year end. The capital reserve balance at 06/30/2025 was reported at about $1,365,000. The auditor said some balances shown reflect the snapshot as of 06/30/2025 and that subsequent withdrawals for the adopted '26 budget would not be reflected in those figures.
The auditor noted one formal recommendation: student-activities receipts were not always deposited in a timely manner and should be deposited more frequently (ideally two to three times weekly) to strengthen controls. The auditor also raised two comments: purchase-order dates appearing after invoice dates in some cases and general GASB reporting changes to expect.
Board discussion focused on the size and appropriate use of excess surplus in the '26 budget, encumbrances rolled into the next budget year, and shared experience of Medicaid reimbursement shortfalls across districts.
Why it matters: The audit validates the district's financial statements, informs budget choices and identifies control improvements administrators must address before or during the coming budget cycle.
Speakers quoted or referenced: Auditor Heidi; board members and business office staff who answered questions about encumbrances, capital reserve withdrawals and Medicaid reimbursements.
