State: School district overestimated three budgets by more than $30 million

An audit reviewing the Hewlett-Woodmere School District’s financial health between July 1, 2012 and May 31, 2016 was released on Jan. 27 and revealed that district officials overestimated three budgets by a total of $31.1 million, according to the state comptroller’s office.

The district includes five schools totaling about 3,400 students in pre-K through 12th grade and 660 employees. The state sought to address this question throughout the audit: “Did the Board of Education and district officials ensure that budget estimates were reasonable and appropriately maintain fund balance?”

The audit concluded that district officials, “did not ensure that budget estimates were reasonable and did not properly manage fund balance,” the state comptroller’s office stated in the report. The current state limit on unrestricted reserves is 4 percent.

In the three fiscal years that were audited, the board overestimated costs by a total of 10.4 percent. The state recommends that the district develop fund budgets that incorporate realistic estimates and ensure reserve funds are managed according to district standards.

The miscalculations were for special education programs, teachers’ salaries, employee health insurance and transportation, the state reported. The district stated that discrepancies in special education estimates occurred because the budget is put together before student enrollment is finalized.

“Given vast financial uncertainties and the unpredictability of budget development, we created budgets that anticipated significant expenditures,” Dr. Ralph Marino Jr., superintendent of Hewlett-Woodmere schools, said.

Brian Butry, a spokesman for the comptroller’s office, said that the state approves of school district saving money, but 4 percent is the limit. “We would like to see school districts have a cushion for rainy days when there may be issues that come up,” he said, but the law is the law.”