Auditors from EFPR Group presented the Westbury Union Free School District's annual audit on Oct. 22, telling the board the financial statements and federal grant compliance audit would receive unmodified ("clean") opinions while noting one statutory noncompliance.

John Costello, engagement partner at EFPR, said auditors found "no instances of material weaknesses or significant deficiencies" in financial reporting but reported one required noncompliance: under New York's Real Property Tax Law section 13-18 the district's unrestricted general-fund balance exceeded the 4% limit, at 5.33 percent. Costello said a corrective action plan included in the financial statements aims to remedy the excess within a year.

The audit presentation outlined districtwide totals and changes: total assets of about $204 million, total liabilities of about $336 million, and a net position deficit of about $168 million; the auditors said actuarial changes to pension and other postemployment benefit (OPEB) assumptions drove much of the year-to-year movement. On the general-fund (modified-accrual) basis, the auditors reported a year-end fund balance of about $52.4 million and an unassigned fund balance near $10.7 million.

Why it matters: an unmodified opinion signals the auditors did not identify material misstatements in the financial reporting; the RPTL 13-18 limit on unrestricted fund balance is intended to constrain accumulated general reserves. Board members and residents asked for clarification about both points during the presentation.

Costello told the board that an "unmodified opinion is what is otherwise known as a clean opinion." He also explained the 4% limit to a resident who asked for detail: "Under New York State, real property tax law, section 13-18, school districts are only allowed to maintain 4% of their fund balance as unrestricted ... The district was at 5.33, which is only 1.33 above it," and that the district has proposed a corrective action plan in the audited financial statements.

Superintendent and board remarks praised the business office's preparation for the audit; board members repeatedly acknowledged Mary O'Neil and the business office team for providing documentation and working with auditors.

Ending: Costello said the final step is a management representation letter once the board formally accepts the audit for the record; the paper audit will be posted to the district website after board approval, he said.