The Toms River School District is in a "strong financial position" according to the results of a recent audit of its balance sheet.

Frank B. Holman III of Toms River-based Holman & Frenia Associates presented his firm's findings at Tuesday night's meeting of the Board of Education, held in the auditorium of Toms River High School North.

Holman conducted the audit for the fiscal year that ended on June 30, labeling it a “clean” audit that revealed a “strong financial position” for the Toms River district.

“This was a thorough review, and the board is definitely paying attention to the numbers,” Holman said.

Holman explained that the district had total assets of $138,550,000 and total liabilities of $95,470,000 – leaving a total of net assets for the Toms River Regional School District of $43,080,000.

The auditor also pointed out that though this audit showed the district came in under budget by $2.6 million, it also revealed the district ended the fiscal year with reduced surplus.

“The state allows $3.9 million of surplus (for the district) and you had $2.8 million,” Holman said.

Holman made several points of recommendation to the school district on how to more efficiently conduct their finances in the future. These included:

• A “tighter” count on the school purchasing program and receipts taken at athletic events. “Receipts could be kept more carefully,” Holman stated.

• On school food service, that the district utilizes reports generated from the cafeteria registers that properly differentiate between cash sales and sales on account.

• That the school district makes deposits for student body activities in a timely manner, obtains invoices for all disbursements and properly authorizes those disbursements.

• On facilities and capital assets, that the school district replaces all missing or worn tag stickers.

• Finally, that all capital assets on the district’s premises and locations be properly documented in the capital asset report or as Holman advised the board, “to code and identify their asset inventory.”

On the subject of his recommendations to the district, Holman later labeled them as “serious enough to report” but “not uncommon areas of deficiencies” in other school districts he’s previously audited.

However, Holman also said the district currently “could not account” for $76,000 of lighting equipment; a discrepancy brought to light when an inventory of the district’s fixed assets began during the audit. The auditor noted that the district is certain they purchased the equipment and has undertaken a search for it.

Holman thanked the board for their “complete cooperation” with the finished audit, and board member Gus Kakavas replied by complimenting Holman on the work that his firm did.

“We did grill you and your staff for hours. As you know, we are sensitive to the complexity of the budget and addressing financial issues. This is your first year (completing the audit), and you did an outstanding job,” Kakavas said.

Residents questions

During the public comment section of the meeting, resident Dennis Galante questioned why he was only learning about the audit findings at this board meeting, and provided his opinion that there was little chance for public input.

“I don’t think that’s transparent,” Galante remarked.

School Board CPA/Business Administrator William Doering later commented that the board had a public meeting on the audit on Nov. 29, which may have been an ideal time for Galante to make his inquiries to the board on that topic.

Galante questioned if material from those meetings such as the one Doering referred to were able to be accessed through OPRA (Open Public Records Act) requests. Board Attorney Thomas Monahan responded that if a citizen has any OPRA requests, to forward them along to the board and they will be examined.

Resident Kathy Lazaro asked Holman about the $76,000 of lighting equipment unaccounted for, and Holman replied that the discrepancy was discovered during a test of the district’s fixed assets.

Monahan added that once Holman was made of aware of the situation, he “reported” the discrepancy to the school board, and the board “discussed the matter in executive session” at Tuesday night’s meeting.

“So the person who first reported this could still be employed,” asked Lazaro.

Board President Edward Gearity clarified that the district employee who reported the missing lighting equipment to Holman is not directly responsible for its disappearance.

“The matter is in legal hands, and due process is occurring,” said Gearity.

Lazaro then inquired how much Holman’s firm was being paid for the task of conducting the annual audit, and Gearity explained that Holman & Frenia Associates was being paid $73,000 annually, per the terms of the board’s three-year contract with the firm.