Glen Cove City School District reports strong financial outlook for 2024-2025 school year

The Glen Cove City School District is entering the 2024-2025 school year with a strong financial outlook, according to an audit presented at Oct. 23 Board of Education meeting. Led by Rob Daniele, a partner at PKF O’Connor Davies, the audit revealed the district’s continued fiscal discipline and some impressive savings, despite a challenging economic climate. Glen Cove closed out the previous school year with an operating surplus and a stable reserve fund balance.
In his presentation, Daniele detailed how the audit process began in June and involved a comprehensive review of the district’s financial statements, compliance with laws and regulations, and internal controls. After months of analysis, the audit resulted in an unmodified opinion — the highest level of assurance, indicating that Glen Cove’s financial statements fairly represent the district’s financial position as of June 30, 2024.
The audit highlighted a substantial $7.5 million surplus in the General Fund, Glen Cove’s main operating account, which Daniele attributed to careful revenue management and operational savings. Revenues exceeded expectations by over $4.8 million, while expenses came in nearly $4 million under budget. Daniele pointed out that real property taxes and PILOT agreements accounted for much of the revenue, while increased state aid and a significant rise in interest earnings also contributed to the surplus. On the expense side, the district managed to save in several areas, even as costs increased in others, such as special education, health insurance, and maintenance.
One of the district’s major financial strengths is its robust system of reserve funds, which includes funds for employee retirement, tax challenges, and capital projects. These reserves, Daniele explained, will allow Glen Cove to handle potential liabilities and offer tax relief without straining the budget. The district has maintained its reserves while staying within New York’s 2 percent tax cap, a requirement that’s been in place since 2011. Glen Cove’s reserves are critical to its ability to maintain financial stability and to secure favorable interest rates on any future bonds issued for major projects.
Although Glen Cove has some debt from bonds and an energy performance contract, the district’s debt obligations are minimal relative to its overall budget. This year, Glen Cove’s debt service payments are projected at about $1 million, with a decrease expected over the next two years. Daniele noted that maintaining these low debt levels contributes significantly to the district’s overall fiscal health.

Superintendent Maria Rianna, who has overseen the district for the past 12 years, expressed gratitude to PKF O’Connor Davies and specifically credited the district’s Assistant Superintendent for Business for their diligence in building the district’s financial strength.
“I came into these district 12 years ago, and we had some financial issues at the time,” Rianna said. “O’Connor Davies has helped us tremendously over the period of time, guiding us.”
Despite rising costs for salaries, health insurance, and retirement contributions, Glen Cove’s disciplined approach has positioned it well for future financial needs and potential state aid cuts. As the district looks ahead, its financial management and reserve strength will be crucial to supporting Glen Cove students while keeping the community’s tax burden in check.