Auditor gives Shelter Island School District a clean fiscal report

Following a critical report on its handling of finances from New York State Comptroller Thomas DiNapoli in May, the Shelter Island Board of Education received a clean bill of health from its external auditor — Christopher Angotta of Melville’s Nawrocki Smith — at Monday night’s meeting.

Speaking via a virtual connection, Mr. Angotta said of seven issues his firm had cited in its report last year, one has been addressed and there is evidence that six others are in progress or in need of Board of Education consideration.

Among the state comptroller’s criticisms had been a charge that the district was piling up reserve funds in its budgets by appropriating a surplus fund balance of $1.7 million from 2015 through 2018, but failed to use the money.

In the latest report from Nawrocki Smith, there has been a positive change in the general fund balance.

At the time of the criticism from the state comptroller, Superintendent Brian Doelger, Ed.D., acknowledged there were issues involving the fund balance that is by law restricted and that unassigned funds had to be more limited than had been done in the past.

At the same time, he said he had reorganized the business office and created an improved budgeting process to address the fund balance situation.

He noted that he would be asking the Board of Education and district taxpayers for authorization to create a repair reserve fund, with some reserves being assigned to that fund.

He also pointed to unexpected expenses related to special education students, some of whom couldn’t be accommodated in classes on the Island. The cost of tuition and travel expenses can be high, the superintendent said.

A turnover in business officials may have also contributed to some issues highlighted by Mr. DiNapoli, Mr. Doelger said last May. He said the Board of Education had hired an outside consulting firm to work with district staff members, predicting that would be less expensive and provide stability to financial reporting.

The Nawrocki Smith conclusions for the fiscal year ended Jun 30, 2020 showed the following:

• There are no material weaknesses or significant deficiencies in internal controls within the school district

• There are no recommendations or suggestions needed to inform the current year

• Of the seven recommendations made last year, one has been fully implemented and many of the others were in the process of being implemented with a few requiring further consideration by the Board of Education.