High school district given good marks on latest audit
By dave benjamin
Staff Writer

The marks are high once again for the Freehold Regional High School District’s yearly audit, but caution is recommended for the future.

Board of Education members were told at a recent meeting that an audit for the 2000-01 school year revealed the district has no material weaknesses. Walter J. Brasch, C.P.A., managing partner, Lipman Selznick and Witkowski, Edison, discussed the report with the board.

According to Brasch, in the audit of the total $102.5 million budget, which ended for the period June 2001, there were no areas of non-compliance.

"Once again, we found the books and records of the school district in very good condition," said Brasch.

From a financial perspective, he noted, "The district finished the year with a total of $6.94 million in the general fund, of which $270,000 is already encumbered for expenditures that were commitments outstanding in June."

Brasch noted that $5 million from that remaining general fund has been earmarked for the 2001-02 budget.

"What you’re left with is $1.67 million," said Brasch. "That’s only about 1.8 percent of your budget, assuming you’re going to use that $5 million"

The accountant noted that the board is on a level that warrants some caution. Brasch said the general rule is to have 3 to 5 percent as a fund balance for surplus and noted the district is below that level. He told the board to move cautiously when spending the 2001-02 funds.

"You’re below 2 percent," Brasch said. "In a $100 million school district budget that’s not a lot of money."

He told the board that for the past year the district spent exactly what had been planned.

"Out of a total budget of $91 million, you spent about $90 million," Brasch said. "That’s within 2 percent."

The accountant said that demonstrates good budgeting practices and procedures.

Brasch told the board next year’s audit report will have a different format. That reporting standard will also be used by other districts starting in the 2001-02 school year, Brasch said. Districts which will use the new format include the Marlboro School District and the Manalapan-Englishtown Regional School District.

Board member Terry Kraft of Howell asked if there was a trend toward lower budget surpluses or if they are holding in the 3 to 5 percent range.

Brasch said there are caps regarding increases and said districts have been forced to spend if they go beyond 6 percent, otherwise the excess has to be given back. During uncertain times, Brasch noted, some administrators may want to slow down to stay within the 6 percent budget surplus limit.