Auditors give Toms River Schools a clean opinion but flag fiscal pressures

The district—s independent auditors told the Board of Education that they issued an unmodified opinion on the Toms River Regional Schools financial statements, while also identifying ongoing fiscal pressures that will affect next year—s budget. "We have an unmodified opinion on our financial statements," auditor Jerry Convey said, describing that as the best outcome on the audit.

Convey and his team told the board the district reported a current fund operating loss for the year of just under $7,000,000 and that state aid was reduced by about $7,500,000 year over year. "If it wasn't for that sale of that building, you would have been at about a $22,000,000 loss," Convey said, referring to roughly $15,400,000 in proceeds from the sale of the corporate center that helped offset operating shortfalls.

The auditors also outlined reserves and fund balances that give the district room to manage the shortfall: total fund balance was reported at about $43,600,000 with approximately $6,000,000 in capital reserve, $9,000,000 in maintenance reserve and other designated funds. Convey warned these reserves are finite and will be a key starting point as management prepares the fiscal year 2027 budget.

The presentation included procedural details: auditors delayed final work while waiting for New Jersey Division of Pensions figures and a federal compliance supplement needed for single‑audit testing. Convey said the team found no material weaknesses in single‑audit compliance testing but did note one repeat finding in the auditor—s management report related to the food service enterprise fund. The auditors thanked district staff for cooperation during the multi‑week audit.

Next steps: auditors said a final report will be completed soon and staff will begin budget work informed by the audit—s findings and fund balance analysis.