INSIDE THE NORTH ARLINGTON BOE:

AUDIT REPORT SHOWS $1.8M IN CAPITAL RESERVE ACCOUNT AND $630K IN FUND BALANCE, $3.8M IN TOTAL FUND RESERVES!

NORTH ARLINGTON - With school property taxes rising all the time, one has to wonder how the North Arlington Board of Education has accumulated millions in surplus over the last several years while crying economic poverty to voters to support these annual expenditure increases!

In the district's annual report prepared by Donohue, Gironda and Doria ending June 30, 2007, Taxpayers fronted $18.5M in revenue while the district also received $4.3 million in state funding and another $601K in federal dollars. $261K was "interest on investments" for a total revenue figure of $23.7M!

Instruction accounted for $9M dollars and $13M for "undistributed expenditures." $328K was dedicated to capital outlay and just over $1M for debt service. The long-term liabilities of the district are $7.6M while the net assets of governmental activities stands at $5.7M.

The news in this audit is the amount of fund balances after expenditures paid.

Fund Balance at June 30th was $3,635,903 of which $548,759 was reserved for "encumbrances." The BOE noted excess surplus of $327,763 and $1.9M in capital reserves.

The total "unreserved/undesignated fund balance" at June 30th stood at $739,269. For a district crying poverty all of the time, these numbers suggest a district flush with cash on hand.

"Why is the BOE seeking CAP waivers when they have fund balances and surplus dollars from previous budgets at their disposal? Why isn't the public aware of the $1.9M in capital reserve? The district is telling half a story and the voters deserve to know the full story about the district's finances," said one former school trustee after reviewing the 2007 audit.

The excess surplus the BOE was carrying at the time of the audit was $682,119.

"Why isn't any of these dollars used for tax relief? Why is it that the BOE is sacking away dollars and asking taxpayers to approve far more in cost than the district has in actual expenditures? Given the stagnant school population and terrible economic climate of the country, it's time for those who constructed this budget to answer the tough questions. Mrs. Kathleen Marano, the school business administrator has an obligation to the public to tell voters just how these surplus dollars will be spent and who is authorizing the expenditure of these capital reserve dollars," said another school insider upon inspecting the annual audit.