During a recent financial review, Spencer-Van Etten Central School District officials identified a discrepancy in district funds following the release of an unofficial audit report. After further examination, district leaders initiated a deeper internal review to determine the cause and scope of the issue.
Auditors from Insero Advisors initially reported the district’s 2024-25 unofficial unappropriated fund balance at 4.62 percent, or $1,344,460. Unappropriated fund balance is money not designated for a particular expense, and therefore, is available for emergency projects, repairs or purchases not included in the annual operating budget.
During the review of the unofficial audit, School Business Administrator Debra Eichholtz discovered that a BOCES aid payment of $869,822.15 had not yet been recorded in the district’s financial statements for the 2024-2025 school year. Once that payment was accounted for, the district’s unappropriated fund balance increased to 7.62 percent, or $2,214,342.
“This process demonstrates that our financial oversight systems are functioning as they should. When something doesn’t align, our team investigates thoroughly to make sure taxpayer funds are properly accounted for in our financial statements. Audits like these are essential to keeping our district fiscally strong and transparent,” said Superintendent Barbara J. Case.
The district plans to transfer $800,000 of the unappropriated fund balance into a Capital Reserve Fund, which, with voter approval, would be used to help offset costs of a proposed capital project that will go before voters in December.
With the $800,000 removed, $1,414,342, or 4.87 percent, remains in the district’s unappropriated fund balance. The state allows school districts to maintain up to 4 percent of their upcoming year’s operating budget as unappropriated fund balance. To further reduce the total amount of unappropriated fund balance and align with the state, the district plans to create a Tax Certiorari Reserve Fund this fiscal year with the intention of moving fund balance into that account during the next school year.
What happens next?
Upon receiving the official audit report, the district is developing a plan to strengthen its internal and external financial controls and ensure similar discrepancies are prevented in the future.
District officials emphasized that identifying and correcting the issue through the audit process reinforces the district’s dedication to fiscal responsibility, transparency, and continuous improvement.
“We pride ourselves on being good stewards of the community’s investment in our district,” Eichholtz said. “This finding allowed us to fine-tune our processes and confirm that our financial records accurately reflect the district’s strong position. Our goal is always to ensure that every dollar is tracked, reported, and used responsibly to support students and staff.”