An external auditor told the East Meadow Union Free School District Board of Education on Tuesday that the district closed fiscal year 2025 with an overspend of about $1,470,000 but nonetheless increased its unassigned fund balance to 3.3% of the following year's budget.

Jill Sanders of auditing firm Cullinan Danowski presented the 2024-25 general purpose financial statements and said her firm issued an unqualified opinion for all funds except the extra-classroom activity accounts, where limited auditor access is common. Sanders said the overspending occurred primarily in instructional and transportation codes and that a drop in one-time COVID-era funding between fiscal years 2024 and 2025 contributed to the pressure on expenditures.

The auditor said revenue exceeded expectations by roughly $6 million in FY25, boosted by increased state aid and favorable interest income; that offset prevented the district from dipping into reserve accounts. Sanders told trustees the district's unassigned fund balance rose to an estimated $8,949,000 (3.3%), up from about $5,088,000 the year before.

"When we look at the unassigned fund balance, the state would like you to be around 4% as a safety net," Sanders said, noting that although the year contained a half-percent overspend, the revenue offset left the district in a stronger position than the prior year. She recommended trustees review the district's mitigation plan (auditor's report pages 70'72) as administrators prepare the FY26 budget.

Trustees asked whether the district had used reserve funds to cover the overspend. Sanders replied no, adding that tapping reserves would require board approval and that the district's internal postings and supplemental audit communications were consistent with the financial statements.

Board members and the superintendent contrasted East Meadow's results with other districts that closed with deficits and greater overspends; Sanders said the other districts she referenced closed the year in the red and had eaten into their unassigned fund balances, which is not the case for East Meadow.

The auditor also reported about $495,000 in audited extra-classroom activity cash accounts at year-end, noting the state requires a cash-basis disclosure for those funds. Sanders closed by noting the district has made progress on previously cited internal-control items and that the management letter and adjusting journal entries were included in the audit package.

The board did not take formal action on the audit report at the meeting; trustees asked administration and the business office to continue budget planning and outreach to the public ahead of the next fiscal cycle.