Montville Schools Receives 'Healthy' Audit Report

Montville ended 2012-13 school year with $3.1M in fund balance surplus with $1M given back as tax relief in next budget cycle.

It was nothing but good news for the 2012-13 audit report for the Montville School District. Robert Haag, a certified public accountant with Fair Lawn-based Lerch, Vinci & Higgins, presented the report at the Dec. 3 school board meeting.

The district received an unqualified opinion, which is the highest level of opinion an auditor can give, said Haag, adding that it means all financial statements were prepared accordingly and no issues were found.

The district ended the last school year with $3.1 million in surplus in their fund balance. The state limits the amount of surplus that a district may have with exceptions. That cap is $2.1 million, so the $1 million became excess surplus and was required to be given back as tax relief in the next budget cycle, which is the 2014-15 cycle.

On top of the surplus number, the district also has “healthy” reserves. They have $7 million in capital reserves for future years that can be used at any time such as for items in their long-range facilities plan.

The district also has $665,000 in maintenance reserve. That can be used for upkeep of the buildings, but not capital projects.

In the other audit comments/recommendations, the district has no “significant deficiencies or material weaknesses,” said Haag. All comments and recommendations given the year prior were addressed for the 2012-13 audit report.

According to the audit report, “financially the district is very healthy” and it’s an “excellent audit report,” said Haag.

Haag audits seven or eight other districts and Montville “is at the top of the list” in terms of healthy audit reports.

“I think the seven years I’ve been on the board, this is without a doubt the best audit,” said Charles Grau, board member and chair of the Finance and Facilities committee, adding a thank you to Business Administrator Jim Tevis, his office and his staff. “I think this audit is indicative of the leadership that we have in that office.”


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