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Independent audit finds 22 deficiencies and auditors say Hackensack district faces $17 million gap
Summary
Wilcox & Company reported 22 findings in the June 30, 2025 audit — including 16 in financial planning and reporting — and said the district’s fund equity fell to about $21 million, creating a roughly $17 million shortfall for 2025–26 that will require both one-time and recurring fixes.
An independent auditor told the Hackensack Board of Education on Jan. 21 that the district’s June 30, 2025 audit contained 22 findings, including 16 related to financial planning, accounting and reporting, and five single-audit compliance findings. “We found 22,” the auditor said, adding that the most critical finding was an inaccurate position control roster that prevented accurate budgeting for salaries.
The report showed fund equity declined from about $33.7 million in 2022 to $21 million at June 30, 2025. The auditor said historically one-time federal and state pandemic-related funds had been used to support recurring expenses and that the district repeatedly drew down fund balance to offset operating costs. “What you see is a pattern of cash reserves being drawn down and used and not being replenished,” he said. The auditor warned the district did not meet the state’s maximum allowable undesignated fund balance by roughly $175,000 at June 30, 2025 and that accounting and reporting weaknesses triggered compliance findings.
Board members pressed the auditor for detail on how 2024 showed far fewer findings than 2025; he said differences can reflect scope and procedures between firms and that his team reported what they saw in their review. The auditor also explained single-audit items tied to reconciling board secretary reports with bank activity and to errors in the student-count application for state aid. The auditor concluded: the district’s spending and staffing growth were not supported by recurring revenue, leaving a structural imbalance that must be corrected.
