Recent Audit Findings | Clarifying Confusion
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January 23, 2025
Dear Teachers, Families, and Community Members,
A recent news report may have caused some confusion for our community regarding our audit, district finances, and budget planning. To ensure that we are transparent with our community we would like to clarify some misleading statements that are appearing throughout local and social media regarding the recent audit.
- The recent audit was of the 2023-24 fiscal year finances.
- Budget management is occurring for the 2024-25 fiscal year.
- Budget planning is beginning now for the 2025-26 fiscal year.
- It has been reported that the 2024-2025 proposed budget passed with a forecasted deficit. This is false.
- The district proposed a balanced budget to the BOE and community voters, and a balanced budget was approved by the voters in June 2024.
- It has been reported that the audit found the district had about $31M in its unassigned fund balance. This is misleading.
- Of the $31M, $ 13.3M was the existing balance from June 30, 2023.
- It is good financial management to have savings at the end of the fiscal year.
- Once restricted reserves were funded, as approved by the Board of Education on June 27, 2024, the district has $18M in unassigned fund balance.
- This is 1% over the 4% set by the state Comptroller’s office.
- Although this is not a consistent practice for our district, the NECSD is not alone in exceeding the 4% unassigned fund balance.
- District administration will have recommendations for the use of this money; however, it cannot be accessed without approval by the Board of Education and/or voters at large.
- It has been reported that the district has multiple accounts that haven’t been up to date since 2017. This is false.
- The audit reported that the district has work to do cleaning up “stale dated checks”, some going back as far as 2017.
- These are district checks that have not been cashed by the recipient
- Attempts have been made to contact the payee and reissue for payment
- The audit recommends that this process be done annually.
- We are looking at our internal process to complete annually
Dissecting an audit
NECSD annual external audits are publicly posted on the district website. An audit reviews completed spending. They can be found by clicking this link..
The audit that the district just received reviewed the district’s finances for the 2023-2024 fiscal year. The district levied a 0% tax increase for the 2023-2024 fiscal year. The findings of that audit were in line with communications that the district shared confidentially with the Board of Education and indicated to the public through Board of Education meeting minutes.
To reiterate, the district anticipated findings from the external auditor based on our own professional knowledge of what we were overseeing daily. Our concerns were communicated with the Board of Education and when possible, made public. Staffing recommendations to remedy these concerns were communicated to and acted upon by the Board of Education.
Surplus is revenue in excess of expenses at the end of the fiscal year. In fiscal year 2023-24, the surplus resulted from additional revenues received. For example, the district received additional state aid, higher than anticipated interest earnings, Medicaid reimbursement, and utility taxes. The Board reviewed and approved funding of restricted reserves based on the anticipated surplus on June 27, 2024 (Resolution 6.1), based on the Superintendent's recommendation.
Developing a Budget | A yearlong process
In preparing a budget, the district estimates revenue and expenses for the operations of our district. Feedback is gathered, priorities are weighed, and a budget is created. The district then must operate within the approved budget total as approved by the voters. Throughout the year, needs and priorities may change, requiring adjustments to our original plan.
Factors that will impact the anticipated budget needs and priorities include, but are not limited to:
- Timing of the Governor’s approved state budget
- Allocation of state funding
- Legal claims and settlements
- Rate changes to health insurance, which occur mid-year
- Student enrollment changes, student programming needs
- Out-of-district placements
- Transportation
Entering Budget Development Season | Focusing on What Matters Most
As we enter budget development season, we are mindful of the need to plan strategically to support the district’s long-term goals. Our commitment to equity and excellence means every dollar spent must align with our priorities—ensuring all students have access to high-quality instruction, essential resources, and opportunities for enrichment. We will continue to focus on literacy tools, professional development for staff, and maintaining safe, welcoming school environments. In this process, we are committed to transparency and have already begun engaging families and stakeholders to ensure our budget decisions reflect the needs and priorities of our community.
Sincerely,
Dr. Jackielyn Manning Campbell
Superintendent of Schools
ATTENTION: Are your scholars or colleagues doing something great? Please contact the district Communications Team at communications@necsd.net. We’d love to visit your class or event and/or post your pictures and recap to highlight the amazing accomplishments throughout our district!
