That's not me anyway. Don't worry. just so tired. >> No, I can't. Actually, not >> there. >> It's our >> Did you do this on purpose? I didn't really
read this first and then Okay. Good. Call the meeting to order. Please rise for the flag salute. I aliance to the flag of the United States of America and to the stands one
nation under God, indivisible with liberty and justice for all. The New Jersey open public meeting law was enacted to ensure the right of the public to have advanced notice of and to attend the meeting of public bodies at which any business affecting their
interest is discussed or acted upon. In accordance with the provisions of this act, the Cedar Grove Board of Education has caused notice of this meeting to be advertised by having the date, time, and place thereof posted on bulletin boards in the district, published, and/or
transmitted to the Verona Cedar Grove Times newspaper, tap into online news, filed with the township clerk, and posted on the district website. Could I have a roll call, please? >> Mr. Grande. >> Mr. Marzulo, >> here. >> Mr.
here. >> Miss Keegan >> here. >> Miss Dora >> here. >> Good evening everybody. >> At this time I open the meeting to public comment agenda items only. Seems that there is no one here for
that. I move to close that portion of the meeting and we will move on to our student representatives. Good evening ladies. >> Hi everyone. We had seventh grade.
>> Um, this last week the MMS winter concert was here. It was an absolute blast. Congratulations to all the select group choir, orchestra, and all the band students who participated. Um, the fifth grade class at MMS learned to celebrate the Thanksgiving parade in
their language arts class. They read Balloons Over Broadway followed by a fun activity of creating their own balloons. The book helped them inspire their fun and creative designs. Both the high school and MMS had John Halligan come in to present his son's
story. John Alagan taught the importance of bullying and cyber bullying. John's son Ryan was bullied since the fifth grade and he ended up committing suicide in the eighth grade. John shares Ryan's story story to show the importance of what bullying can do and always to be kind. He tells Ryan stories to prevent
bullying and to do the right things in honor of his son. Congratulations to Sophia Fasil for being student of the month. This month's demonstration was gratitude. Sophia is the captain of her volleyball team and a part of the peer leaders in national honor society. Sophia was nominated for
her outstanding abilities to overcome obstacles. She always goes out of her way to help others and her kindness shows inside and outside the school. Inside the classroom, the AP bio students had fun completing an Eminem lab in class. In the lab, they incorporated the Eminem data based on
color and use it for their kai squared equations. The English three honors students completed their epic bose com containing their lineage, past, accomplishments, and intentions for the future. They did this after reading Bao Wolf. The Cedar Grove High School had their
winter art show at the school. At the show, our school choir, orchestra, band, and coral group crushed their performance. The Cedar Grove High School choir members carolled at the annual Cedar Grove Historical Society holiday open house at Morgan's Farm.
The CGHS robotics team was featured on CBS News Sunday, December 7th. The team and their parents were treated to a tour on the entire floor. They got to see the set of Drew Barrymore and John Oliver and were able to visit the control room and where the students learned about
automation and broadcasting and how robots have made it easier to produ produce on TV shows. The CGHS students HOSA and Key Club all stepped up to deliver 25 bags of food to Holy Spirit in Verona. The schoolwide project was a fantastic display of the
generosity and heart that defines the CGHS community. The elementary school northn has been spreading lots of cheer with fun and festive spirit weeks this December. Students dressed to impress for the winter concert on December 9th, rocked
ugly sweaters on the 12th, wore blue or silver for Hanukkah on the 15th, and celebrated Gingerbread Day on the 16th. With even more joy up ahead on Reindeer Day the 17th, Elf Day the 18th, and Grinch day the 19th, holidays around the world, culture cultural pride day on the
20th, and Polar Express pajama day on the 23rd. As a part of winter concert celebrations, a special raffle was held on December 1st through the 6th with many North End families excitingly participating. Winners were announced on
December 7th. Harrison Soers and Max Blender from grades K through two and Quinn Stwinsky and Chameleia Vargas from grades 3 to 4. Their families enjoyed two front row tickets to December 9th concert and received a special gift to
surprise their children. North Enn is incredibly grateful for the generous donations and thanks to all of its families and students for helping make the concert such a success. In late November, North End students created a beautiful Thanksgiving bulletin board decorated with colorful leaves, each one
sharing something that they are thankful for. It was a heartwarming display of gratitude that showcased the kindness, creativity, thoughtfulness, and voices of the students. Also at North End, they would like to thank to extend a heartful thank you to North
Endn families for their incredible generosity and compassion this holiday season. Thanks to their kindness, Northn was able to fill all seven baskets for a family in need and provide them $370 in donations along with gift cards to help support them during the holiday. Their
willingness to not to give not only a meaningful need but also reflected the strong sense of community community that defines North End. Everyone is so grateful for their support and and showing Panthers the power of empathy and generosity.
At Southoun also has a bid a fond farewell to retiring officer Hectis, one of Cedar Grove's police officers who has walked through our school over the years to help keep us keep us safe. Staff and students signed a large card to thank him for his dedication and wish him well in retirement.
Also, our holiday shop was a wonderful success. Students had such fun selecting the perfect gifts for their family members and the excitement throughout the school was contagious. We were fortunate to welcome representatives from the Seeing Eye of Morristown, New Jersey. Students learned
about the important role of seeing eye dogs in society and are currently participating in Pennies for Puppies collection to support this meaningful cause. Our preK winter concert was a huge success. Our youngest students delighted the audience with a
celebration of winter and holiday songs. We are now looking forward to kindergarten through grade 4 winter concert where students will showcase their musical talents on December 18th. In November, parent teacher conferences were held for students in preschool through grade four. These conferences
provided valuable opportunities for parents and teachers to connect and discuss progress and share ways to best support each child's success throughout the school year. Our kindergarten students enjoyed a festive turkey celebration in November. We are incredibly thankful to our parent
volunteers who helped run centers in each classroom. Students had fun painting hand turkeys, creating turkey hats, using unit blocks to measure feathers, exploring shapes by identifying sides and vertical on shaped turkeys, and participating in many other hand-on activities.
And that's everything that's been going on at our local schools in town. Um, thank you guys so much for having us. Thank you, ladies. There's a lot going on in our schools. >> Okay, we're going to skip over
committees and go to our presentations. Yes, please. Yep. >> Okay, Angel, is this working in the back? Yes. Very good. Okay. Well, we want to begin this evening uh by thanking all of the players from our uh senior varsity team for coming out tonight. Um, in a few moments we're
going to acknowledge you all for your state championship and ask you to come up and be greeted by the board members and come on stage so we could get one group photo. Um, and I want to also do a special note of appreciation and thank you to all the families that came out tonight. We know this is the holiday season. It's a cold night. So, we really
appreciate you taking the time from your bus busy schedules uh to join us this evening. Before I bring up your coach and our athletic director, just a few words if I could, just some observations and reflections I have about how proud we are of how much you all accomplished this year as one unit. Uh I could three
words come to mind when I think about watching you all play this year. The first is growth. Uh from my perspective and talking to your coaches and teachers, every game you guys got better. You worked hard. You no quitting you whatsoever. And that leads to the
second uh word that comes to mind for me at least is your resiliency. How many games did I hear about from your coaches the next day, second half comebacks, being resilient? And those are two qualities. Always being committed to growing, always being resilient. Two qualities that will take you all very,
very far in life. So we could not be more proud of all of you for how much you accomplished as a team this year. And the third is coaching. And I think about your growth and I think about your resiliency. That all comes from leadership. And our head football coach,
our head athletic director, Mr. Gogerty, uh has done an outstanding job this year, as he has every year, in leading our teams. And I'd like the community to know, in case you don't, athletic director was honored this a few weeks back by being named this one of
two athletic directors of the year for the northern region of New Jersey. an honor that's welld deserved and one that I hope we could all acknowledge him for this evening. Um, with a round of applause. Thank you. So, without further ado, our true leader, Coach if you wouldn't mind
joining up here and uh I can help you hand those out if that's good. Sure. >> Thank you, Peter. So on behalf of the Cedar Grove School District, um I want to congratulate these young men on another outstanding championship season. Um I think um with
the team and guys we lost last year, there was you know maybe some less expectations out there. Um they didn't surprise me, but I think you know watching them I think they surprised a lot of people out there and that was truly impressive to watch. They finished
10 and four on on the season. Playing 14 games again as a group one team is no easy task. And and I think like Dr. T said they got hot at the right time. Um, and they won their sixth Super Football Conference Division Championship in a
row and for the first time in school history, won back-to-back NJSIAA sectional state championships, winning Northroup One championship backtoback again and reaching the overall group one state championship for the second straight season. Congratulations, guys,
on another outstanding season. I'm gonna go through this pretty quickly, so let's hold our applause until the end. >> Um, and like we said, come down the line and head up onto the stage here. I'm going to start with our freshman, Alex Bolero,
Logan Donlin, Dan Lella, John Martinelli, Braden Little, >> Anthony Po, Tommy Regowski, Charlie Sjac, >> Angelo Albanese, >> Dan Kanzerite,
>> Sebastian Florio, Andrew Loftess, Marco Mazulo, Chris Miller, >> John Carlo Moresi, >> Kian Abujar, Luc Cassidy Jake Katan's right, >> Julian Cruz,
>> Matt Chiraniano Max Herbert, >> Bryce Kent, >> John Cuc, >> James Pelicano, John Paulo, Evans Cavage, Andrew Sadano, Jack Fonus.
Nico Zunic. >> AJ Zjack. and our seniors, Xavier and Pierce Asphalt, >> Jake Bolero, >> Thomas Kenaro Mike Kennerelli, >> George the car, >> Jerry Delesio,
>> Chris Ferrer, >> Sebie Kovac, Michael Leno, >> Mike Rusiano Jake Sariva, >> Jerry Taria, >> Nick Ta, >> last but not least, Gavin Vol. Now we can give them applause. Our NJSI
North two group one state champion Everybody get him. All right. is going to go off. >> Oh, wow. >> Yeah. I saw >> Hi, Andrew.
>> Thank you. >> Thank you. Thank you, parents. Thank you. Thank you guys. >> Thanks for coming out. >> Happy holidays. Enjoy. >> Yes, I see. Um, might as well let him go next. >> Sure, you can. Sure. >> Yeah, absolutely.
>> Okay. Um, our second presentation this evening is our annual uh report of our annual audit. And so I see Mr. Lurch is with us tonight. So Mr. Lurch, I'll invite you up to the microphone. I think you've done this once or twice before. >> Okay.
>> Yeah, there you go. >> That mic should be hot for you. >> Thank you. Oh. Okay. So, good evening everyone. >> Good evening. >> Small group only us it looks like.
>> So, um you know by all means if you have any questions as we go through. >> If you have any questions as we go through this, just stop me at this point. There's really no reason not to. Um so of course as um as indicated I'm
here to present the results of the audit uh for the year ending 2425 Cedar Grove. Um couple of housekeeping items before we get going. Um as far as um as far as you know overall and any of the new governmental auditing accounting standards every time we come there's
always something new and this year's no different. So, um, so last year and a couple years back, we had to deal with, um, some of the Gazsby 96, uh, subscription and right to use asset allocation issues. Um, we dealt with
that as a board and quite frankly, you don't have any material subscriptions that qualify underneath that category. Uh, this year again, we have a new Gazsby that came out and it's number 101, which deals with compensated absences. um you know, does it affect us really as
a board when you're looking at your budgetary surplus balances? No, it's a district-wide number. Really, what happened is and and and somebody decided that even though we do record the compensated absence payable numbers um that are for vested individuals over
time, once they become vested, that liability of that dollar amount goes on the balance sheet. Um the new Gazsby pronouncement requires us now to look at individuals that are not uh not only vested but those that aren't vested and determine what that cumulative total
liability is. So those are the numbers we have reported. Again, I think what you're going to see is you mean that's only in exhibits A up front districtwide. Something we're really not going to ever really want to go through or have a reason to go through. That stuff's really there for when we go out and sell bonds and and we want to go out
into the market. um and rating agencies take a look at your total financial picture. Um so that's kind of on the pronouncement side. Uh the opinions that you receive are unmodified including the single audit opinion on internal controls and and the opinion on
governmental auditing standards. Um those are clean opinions which is what you want. Um of course you're not looking for any kind of issues. Uh there were no significant deficiencies in the internal control process. Uh, as we reported, um, we were subject to a state
single audit. Typically, we're subject to both state and federal single audit. And really, what that means is that, um, anytime you expend $750 or more in either state monies or federal grant monies, it triggers a single audit. Single audit simply means that in in in
addition to the financial audit that we're responsible to do that we have to go back and look at specific grant compliance issues for for either state or federal. We do a selection. Um this year uh federal because of COVID and and
and over the the period of time um almost every district was over the 750 under federal over the last five years and that's because of all the federal money being pumped into the system. Um including yourselves. So totally over that past five years or so that federal
COVID money was about 1.4 million that came to the district. Um, but this year you only had $498,000 of federal expenditures. So, we were not subject to the federal compliance requirement. State, you're always going to be subject state, there was $4.6
million of of revenue that came through in expenditures on the state side. Um, what we did is we tested um Oh, I'm sorry. as in yeah I just have my my uh
we we tested state aid u and extraordinary a since it's low risk you are a lowrisisk order to take um so that's really what's happening on on as far as u opinions and pronouncements really what I'd like
to do now is go through your surplus and if you have your report. It's the large of the two reports. And I'm going to look at exhibit C1. It's page 71. Okay. So C1 is the exhibit of your operating
fund and it's really your revenues and expenditures. And what that does, it just shows you your budget. This is the budget that you adopt. It's your main operating budget that you adopt annually. And it shows the results. So, if you look under the actual column on page 71, you can see that if I go
towards the very bottom, we started the year with $7.2 million of surplus. We ended the year with 5.3 million. I'm just going to round up. So, we had a drop and change in surplus of almost $2 million from year to year.
And I'm going to look at the total budgetary balance of 5,268,000. What is that comprised of? Um it I'm going to start from the bottom and work up. Um it just makes more sense uh logically. Um the unassigned fund balance of $941,000.
That's the amount of money that you can retain for a rainy day purpose. Um it's generally uh 2% of your operating expenditures. Um there of course there are exceptions to every single rule as we know. Um, so
you're 2% and then there was an allowable adjustment. Your 2% $773,000 and they're allowable adjustments. Generally speaking, the allowable adjustments are the unbudgeted portion of your extra inner aid that you receive. So the combination of those two
components added up to the $941,000. Then the next item coming up is a reserve for encumbrances $35,000. It just means goods or services that were ordered but not yet received. A prime example would be um our contract
with Lurch your contract with Lurchy and and Bliss, right? That contract is either entered into in January or May depending upon how you do your school reorg. Uh but the services are never rented until after the school year has ended. So that's why they're a reservation of equity, a reserve for
incumbrances. For instance, if it was a a fuel oil and you purchase some kind of product or fuel oil in May, it was delivered in June and you didn't pay it, it's an accounts payable and charged to to the operating statement. So this is not charged to your to your budget
statement, but it is reserved for future payment. That's your $35,000. And then we get into the restricted fund balances. So capital reserve is $1,259,000. Um that amount um decreased by roughly
$600,000 from the year before. It was at roughly 1 now roughly one 1.2 million. Um and the withdrawals were through um by board uh board resolution. And this is something that gives you the ability,
of course, um, to fund future capital projects to the district. It's part of the resolution that the board of education does every single June. The business administrator would tell you, listen, we need to be able to move money around. If there if there is excess revenue or excess fund balance through
the operations, we'd like to put it into capital projects. We'd like to put it into maintenance reserve. is also an avail availability to put it into an emergency reserve which you're not using. Um so that's the capital reserve. So you're down to 200 uh $1,259,000.
Maintenance reserve is a combination of the two regular accounts here. The total is $725,000. Uh and that money is set aside to maintain the facilities. Capital is for new improvements. maintenance reserve is to maintain the facilities and that
number was 1.2 million down to $775,000. Again, a large portion of it was withdrawn through the budget. And then there was a resolution which also withdrew some money of the maintenance reserve. The uh and of the maintenance reserve,
the $400,000 is now designated again in the budget of 2526, the current budget that you're in. So starting next year, you're going to be looking at, if you don't replenish that, of $325,000 of a balance of maintenance reserve. Unemployment reserve is money set aside
specifically obviously for unemployment expenditures. Nothing uh nothing tricky about that particular line. Um and then it it comes down to the culmination of once we go through what the total surplus available balance is, we go through this progression that we just
talked about. What are we left with? we're left with excess surplus. And when I was here last year and discussed it, it was the very top line, the excess surplus designated. So that's your 1,186,000. Now, if I take that plus the designated
for subsequent year expenditures, that combination um would would would arrive at $1.4 million. And that is the amount of money that you're utilizing currently in 2526 as a revenue line item to balance your budget.
And what happens is is that you know that becomes obviously something that you're accustomed to or used to is the 1.1 or the 1.234 million to balance the budget. So when we ended the year this year, the issue is is that now the
excess surplus is only $417,000. So by just doing that simple analysis, you're at 400 versus 1.4. You know, going into this year's budget cycle, having everything else remain consistent and constant that you're looking at a
roughly $1 million shortfall of a revenue line at him. And you're going to have to figure out how to make that up either through some other source of revenues. And we could talk a little bit about that too because we think at the end of the day there's excess money in the payroll agency account which we
think is going to be able to be brought back in as a revenue. Um and that's going to be part of the process as we go through with this. But I think that's your biggest issue right now looking at what happened through the fiscal year at least financially. So keep in mind you you're going to need
to deal with that particular issue. Um I don't know if anybody has any questions regarding any of the financial information. Okay. So now I'm going to go to the small report which is the AMR administrative findings report. And for
the board members I'm going to just flip through here. Um I'm going to go on page three and we'll start just kind of progress through this. Okay. Um so this report is intended to be you know it's it's it's it discusses all the items that were required to test
and of course uh if we have any exceptions or issues that need to be brought to the attention of the board. This is where the comments or recommendations would be uh presented. Um obviously any of these items that are in here have to be part of a corrective action plan. Um and that's that formal
process. So, under um payroll account um as part of our testing, we do test to make sure that it's required by statute that the board president, the board secretary, administrator, and a chief school administrator certify each payroll as it's being processed. There's
a form and there signatures. Um when we went to look at um a particular month, there were no signatures um in that payroll certification. Uh we looked for some other months and other months couldn't be found. So, generally speaking, they weren't all certified um
as they should have been. The next item deals with um I I guess part of our biggest issue here and that really deals with the payroll agency account. So when we first came in to do the audit um and we were looking at um payroll agency and going through the trust
accounts and the other accounts um we noticed that in the payroll agency account which is you know ideally supposed to be almost like an impressed account where the money coming in should equal the amount of money going out plus if there's any liability uh that's attached to the dollar value. So it's
committed. If a million bucks goes in and we only pay 500,000, at the end it should be committed the other $500,000 relatively speaking. It shouldn't change materially. Well, when we came in and looked at the uh bank reconciliation, the bank reconciliation showed basically almost a
zero balance or okay, well, that's kind of where it was in the year before and how it naturally should be. Most of the money is being remitted by the end of the year. Um, and so there's typically very little bit of money that's being left um, in that account. But when we
looked at the components of that bank reconciliation, there were various outstanding items on that bank reconciliation that didn't appear to be valid and aren't valid. It's almost as if they were just made up to get the balance to come to zero. And as we
started to investigate all of this, we realized that this had to do with this plan 360. Um and that led us down that that uh avenue. So then we started looking at the plan 360 and analyzing and seeing
what was happening with that. Um after a lot of um um review and research going through the history of it, what we determined is is that at the end of I I guess it's um it started in April, but
the start of the fiscal year, the payroll software system was changed. And when the payroll software system was changed on July 1, the way that it was being accounted for, this particular
deduction in the system itself was producing excess money that needed to be deposited into the agency account or go somewhere. And it's because of the way this plan 360 was being handled internally. it was being handled as an
additional item of revenue on each payroll period and a deduction. So when the payrolls were being processed, there was a need of excess money that needed to go somewhere. And so internally, the business office then was transferring the money, sometimes to the agency
account, sometimes they just left it on the balance sheet and put it into the wrong category as an as as a credit to an accounts receivable that were due from the state of New Jersey. So, we corrected all of that. Um, what we didn't do is we didn't go to
the next step further. We knew that we had the general operating account correct. We knew the balance sheet was right. Uh, we knew that there was excess money now being deposited and sitting into the agency account. Um, so that's the next step that really
has to happen and and we've obviously talked to Cheryl about it uh and the superintendent. What needs to happen now is that we need to go through each payroll period period by period and determine what was really responsible, what was what should have been transferred from the operating
account into the agency account. Um, we feel comfortable that the excess money that's going to be in there and I didn't want to move it until we went through and did this complete analysis. I didn't think it was proper to just make the assumption that that was correct. I think we need to go through the verification process. But I feel
comfortable that after we go through the verification process that we're going to wind up with excess money that was deposited and sitting in your bank account called payroll agency. That money will then come transferred get transferred back into your general
operating fund for this year. Um I just want to make sure that I grabbed everything I wanted to talk about. So we had significant items of unreconciled. And then the other thing is is that um there also was and I believe it was was either two or three
years ago where we had the issue with the IRS if you guys were still here. Right. Right. Okay. So, we had the issue with the IRS and that's when um that's when we came in and again I was looking at the agency account and I'm like, well, this time it reconciled to zero, but that time it actually was sitting
with like $900,000 in the agency account. And of course, you know, right away we know, well, that's impossible. Virtually impossible, right? Um because if we had to transfer $900,000, one of two things happened. either, you know, we we we we charged the budget
account that we shouldn't have or in the agency account, we didn't make the dispersements that we needed to to either one of the federal or state um agencies. So, when we when we flushed that all out and then we had determined what happened and we went through and we
we dealt with the IRS and we were successful in getting the interest abated, right? Because you were a a a good um uh the penalty was abated. I'm sorry, the penalty was abated. Um, but you still still got to pay interest on that. But my point is in all of this is
that's when the recommendation was at that point, well, everybody was like, well, how we have to make sure we don't let this happen again. And that was to create and it was supposed to maintain a payroll deduction ledger. So that payroll deduction ledger was supposed to take every time there was a payroll.
It's it's full of all these different categories of the where the money's coming from, right? It's coming out of our operating account. we put into a payroll agency account, but we have that payroll that deposit, whatever you want to call it. It's categorized. It's all coming from a a various federal withholding, state withholdings, uh
pension, whatever it happens to be, it all has a category. And then when the dispersements are made for those specific categories, it all gets allocated to the dispersement. So, anytime you looked at a payroll deduction ledger, at the end of any month, you were to look at that balance
and if the balance had $50,000 of it in it, well, we should be able to go up into a line and say, "Oh, oh, that's the pension the um withholdings, but we didn't make that payment until the 10th of the next month." Simple enough. Well, obviously in the year that we did the
audit in 2425 and last year there was a payroll deduction ledger being maintained. But in 2425 there was no payroll deduction ledger being maintained. I think at the end of the day if there was you know this thing would have flushed itself out much
earlier again as opposed to waiting until we come in to do the audit and we're not coming in here until August, September. So, um, again, I think this was, um, you know, kind of somewhat connected to that whatever happened two two to three years
ago with that, uh, specific issue. Um, any questions on that on that one, >> if I may. >> Sure. Yeah, go right ahead. >> How does this happen? What are what are the
what are the misfortunes that are occurring that force us to be in these situations. >> Yeah. I you know I I think it's it's this particular issue is because of your broker or somebody came and said we want
to institute this self-insured kind of um payment plan. I I guess they're technically calling this a a self-insured medical reimbursement plan. I that's what it's technically called. Um so somebody came and said, "Hey, we could do this." And and quite frankly, we have a couple other board of
educations that actually have the plan. And you know, listen, we're not tax experts and we're not going to make judgment as to whether or not that plan is a viable tax um uh method or not. Um but in those other districts, it's the way they were handling it. >> I was going to say having it and
implementing it in the correct manner so it doesn't bring you to a recommendation on the part of your auditor's whole another level. >> Yeah. and in and so when the payroll provider was changed, we went from an outside provider to doing it in-house.
But if the minute that first payroll was was processed, red light should have went off because I would have looked at this list and it would have gave me a dollar value, whatever you want to call it, and would have said, well, where are we going with this money? And someone would have realized, well, I'm putting
this money into my agency account, but why? Because there's never a dispersement. it's not being transacted. It was a non-transactional activity that got put into the ledger when the payroll was being processed. Um, so again, I think if if it was if the
controls were there and the monitoring, you would have known right away and said, "Hey, wait a minute. Um, why do I have this excess money? Where am I getting this excess money from? I mean, what do I need to charge? Do I got to charge an operating account, a line item, a budget line?" Um, and what was
happening then they at the end they were charging like I said the balance sheet. They were going right against the balance sheet. So kind of a comedy of errors there but um you know I think at the end of the day the biggest issue was is that we felt comfortable now at least that the W2s
were not an issue because that was our biggest concern really was and we were you know it was driving us a little bit nuts as well. Um >> I'm sure with your experience and what you've done and my We received an audit site uh our annual
audit and there were recommendations in it. We had concerns and usually you know most of them >> right >> focused on activity accounts and things like that. >> You know to have this type of recommendation within several years of each other is a little bit of
mindboggling to the average person. >> Yeah. And you know you know you sitting there and you try to figure out why. And I was thinking about that driving over too because I was just at a board that had a had a transition of of personnel, you know, and that it it quite frankly that's when it typically happens these
things, right? And and you I mean as a board here, you know, you basically had three different entities in one year, right? So you had a you had your original and then you had this temporary uh unit and then and then someone else and so you had three in one year.
Usually if it's one in one year, if the person isn't really good at what they do, there's going to be issues, right? >> Would you would you your expertise tell you that this all rolls back to the payroll issues that we had x number of years ago moving forward
>> different um you know it just it and again I don't like to say coincidence but it's different. it just happened to be in the payroll and that, you know, quite honestly could be the weak link of whoever was in there, you know, doing the payroll, right? I mean, that's kind of a common thread even though they're
two completely different issues, but they're not unrelated in the sense that, well, wait a minute. If I know I'm supposed to be depositing a million dollars in every pay period and and I'm allocating it, why do I have more money? Or why do I have money still sitting in the bank account? That number should be
impressed down to whatever your normal number is. It could be 50 grand. It could be zero on a monthly basis. So from that respect, it's not rocket science. Something should have went off and said, "Hey, wait a minute. This doesn't look right." And then at that point, if that's a clerk, then that individual had the responsibility then
to go to their hire or their superior and say, "What do you think? What's going on?" And you know, you know, quite frankly, the last time with the 941s and that was a whole quarter, you know, and so it was it was 900,000 and change,
>> you know, and and we were successful in getting the IRS to, you know, avoid the u the penalty. The penalty was huge. It was like an 18% penalty. It's like 180 grand again. Um you know, you have to pay the interest because they're just saying, "Hey, you you had use of the money, which we did, but we're not
earning what they're charging us." So, you know, but um >> thank you. >> Yeah. >> Yeah. Yeah. >> I I think my question is what have we put in place to pro to rectify that or ensure that it doesn't happen again?
>> Um so, right away, um tonight on the agenda, uh we do have a new payroll person starting. The other thing I've done is I've now been here two months, right? >> Um, and from the audit and just regular day-to-day activity, >> um, I've observed some
inefficiencies um, and maybe reallocation of tasks that should be done um, and they're being implemented. Uh part of this issue that has stemmed over the years I believe is all
different systems have been used and people have kind of kept their own sheets. Um there's really not been a real check and balance at the end of the day. It's the auditor who ends up becoming the check and balance. There's no one in the district being the check and balance. Um so I am putting together
things that would put that check and balance before the auditors come here. So when the auditors come next year, we have no audit conference. >> We we don't we don't that's my goal. >> We don't want to find anything to fix this because we don't want you to find anything. There's been other things I've
seen not just in this fund but in other funds and I'm putting together a plan that will solve issues in all different areas. It's not even just this. It's all different areas. and they need there's training and I'm training the staff on
you know this is what it means and how this should be done and going through the we're going through everything >> and how much involvement moving forward do does you and your um firm have with us or is it just we see you again in a
year's time >> yeah well I you know I think I and and certainly you know administration can speak to it too uh you know I think the next step is for us to go through and look at the period from when the system started >> to determine Yeah. And and it's it's a
nothing more than a, you know, it's an analysis for every pay period, you know, what's the allocation of the deposit and where did the dispersements go and I have a very good feeling that I know exactly what that number is because it's staring at me all the time when I look at that number on the bank
reconciliation. Um but ju just to answer your question and take it to a different a different avenue um regarding about what's happening now. Um, you know, I think that the personnel that you had, right? And listen, the
school business administrator, there's so many different hats you have to wear, right? You know, I only know one hat and that's the accounting side, right? And and that's a big piece of it, too. Um, but you know, I know that Cheryl clearly her background,
that's her area of and I don't know how good you are on the other side, but I know how good you are on the accounting side. Now, the other two individuals that you had that that was not their forte. They were not trained accountants. That was not going to be their forte. Um, so I think, you know,
just from that perspective alone, I think you're in a much better spot, at least on on that stuff. The other stuff, I have no idea. Again, I would couldn't answer that question, but I mean, I feel comfortable and you should feel comfortable going forward. >> I appreciate you saying that. And if I
could just also add um having had an opportunity these past two months to work closely with Cheryl, it was evident within the first week um her level of mastery of details was nothing we've experienced in the business office since I've been here and from what I could
tell even prior. Um so I I it's it was it's been like night and day these last two months. And so I am fully confident we will not have this type of findings a year from now. Um, and that and be and I don't just say that to sort of um, you
know, kind of puff ourselves up. I It's evidence-based. I'm seeing Cheryl on a daily basis putting in new fiscal controls and new systems. That's that's really giving me a lot of confidence. >> Good to hear. Thank Thank you, Cheryl. >> All right, I'll kind of go through the
other comments that we have. Um, we don't have to spend a lot of time on the other ones because that that was really the that's that's the the major issue. Um, so I'm on page four. We also test travel um post-t travel reports. Um, the ones
that we tested were not available. Again, it's just a procedural issue. Um, we also looked at um, you know, we were looking at some of the revenue items and again this just goes to again, I think it could just go to again the the sloppiness in the business office. So,
we get a pilot from the town, $1.2 $2 million annually, right? Well, when we came in to do the audit, we only had collected $900,000. And so, again, it came it get to the point where we're in here three months later and we're like,
where's the other $300,000? Oh, oh, oh. Well, we better make sure we go call up and try to get the money from the town, which you did. You did. But it's it's more of again the process and the policies. I mean, this is not something that should that's a major item, right?
I mean, that's it's not like you're talking about, oh, I forgot to bill the town $5,000 for a rental. Um, so I thought just, you know, it needed to be said again just because it was one of the items and just kind of talk about what we've kind of been experiencing.
Um, and on page five, you know, we look at your your special revenue fund, which accounts for all your grants, federal and state, and local, and you get quite a bit of local money that comes through the district. And that money is really set aside for specific use and purpose.
And we've said this year in year in year out, you know, that we have this unspent local money, $100,000 that we're not spending, spend it. So, at this point, you know, we knew and I knew Cheryl was going to go through it anyway, but again, this has been years of of
constantly putting this comment and saying, "Hey, we have to spend the money. Spend the money." And I know you you're you're in the middle of doing that. Yeah. Um, so that's more of an FYI, but again, just looking at what we've gone through. And then when we went through the
purchasing and the contract audit, um, you know, there was a contract awarded by resolution. Um, and it really was for the uh for the particular group that came in and did some of the accounting work. Um, but the resolution never identified how the how the contract was
awarded. I mean, was it bid? Was it a competitive contract? Was it an EU? You know, contracts need to specify how you award the bid, right? Or the contract. And it just was blank. Uh it didn't indicate to us um how it was being
awarded. Um, we had two other areas where we looked at. We look at quotes. So, we look at contracts over the 44,000 and we look at stuff between the 17 and the 44. And there were some there were some projects being done. There was a painting u item that was being done. Um, also some
insurance for Chromebooks. Um, but there was no evidence that any of that stuff was quoted. In other words, you got to get multiple prices on on something that's below the $45,000. >> You got to get three quotes and you know, I don't know if they did or didn't
or we came in to do the audit every, you know, was kind of like I don't know, can't find it. You know, again, by the time we came in, it was either you were on your second and then your your third here at the very end when we trying to do the final cleanup, but um so that's
one of the items that we did come across. Um and then there was also a contract with a vendor that went through the ED data cooperative bidding. um positive thing was is that the pricing sheets were there and that's something we're seeing at every board of education. They're now retaining the
pricing sheets, but uh on the flip side, we didn't have the other vendor documentation, which is the business registration, ownership disclosure, political disclosure, all of that stuff. So, you know what happens is and Cheryl could tell you, you know, um you know, we give our orders when they go out, this is a list of everything that we
need to obtain for every one of these items that we test. It's the same thing when you're running the business office, right? you know what the checklist is. You know what you have to have for the file. Just wasn't there all the time. Um and then the last uh the last item is on
page eight. So the last two items really number 257 deals with capital assets. So when we were doing the audit and we were going through the capital assets and the distinction for us is in and and for you as well is your operating fund
is fund 11, right? And your your capital asset section is fund 12. Well, it's very similar also in a special revenue fund which is being sourced from state and federal grants, right? But when we were looking at the fixed assets, there were incorrect budget charges where
there was roughly almost $650,000 worth of capital assets in the special revenue fund that were being charged to operating line items. So we reallocated it for the audit report and recorded the fixed assets. Um there was a the old referendum, the
2018-19 referendum that was finally completed in 2425. Um, it was not recorded as a capital asset. It's still sitting in construction and process. Cheryl needs to just make sure that the uh the new company just rolls that into a
depreciable asset. And then there were also uh food service additions that we've had for a few years that were not included and updated in the fixed asset report. And the last item that we have here as a comment deals with the capital project fund. So, the capital project fund is a
separate fund that accounts for your facility improvements, your referendums, anything that you're doing as a long-term type construction project. Um, this is something that we've had, again, we've mentioned over the years that the capital project balances, um, the the
unexpended balances that we have in the audit report are roughly $2 million on these projects, but the internal accounting records are only $1,750,000. And we've given that information year after year to have that corrected internally. So right now internally you're looking
like you only can spend $1.7 million on these remaining projects, but we know that the audits showing $2 million. And the very last item is incumbrances. So again, we test for contracts. Obviously, we're going to look at the year end. We're going to make sure that all the big contracts are recorded.
Well, there was a contract for $1.7 million that was awarded in June. was not encumbered at the year end. We recorded that incumbrance. You still had money left in the project, so we're fine. And that's that's it, believe it or not. >> Yeah, that's it.
>> That's it. You don't want more, do you? >> No. No. No. >> Yeah. I mean, listen, for for Cedar Grove was it was not a good year. Norm normally we, you know, it's better than this. And um you know it is what it is. And again I think a lot of it has to do
with with with that position and the turnover. Um >> well we should say that you know Peter and Cheryl are kind of exempt from this. They were not. >> Yeah. >> Sorry. However I will say having been an administrator for a long time. That's an
embarrassing report. >> It's not good. >> No. >> But I will tell you I've seen worse. >> Of course. that if that's any solace district.
>> Yeah, sure. Look at Monontlair. >> Okay. >> So, >> we have work to do. >> Yeah. But again, I think I think you're on the right right path. So, anyway, thank you. Have a nice holiday season. >> Yes. You, too. We appreciate it.
>> Good night, everyone. Okay. >> Committee reports. >> Paul, would you like to speak? >> Well, >> I mean, we didn't we don't have much >> in regards to right in regards to our meeting for education and >> personel
>> personnel. uh we we met with Dr. T and um all the items that we discussed that that meeting are being presented tonight as correct as part of resolutions. Um I would like to to say that the the staff
along with Peter did an outstanding job on the five-year curriculum review cycle >> and that is a very professional document that will take us into the next several years and allow our to really grow and
be uh be budgeted and funded in the appropriate way. >> Thank you for that, Peter. >> Yes. Um and before we get to Dr. T's um update, there is a uh resolution on the
board tonight um acknowledging um Mr. Grande's um participation on the board. I just want to say a few words before I hand it over to uh Peter. So, as a board president, I'd like to take a moment
tonight to recognize and thank Mr. David Grande for his dedicated service to the Cedar Grove Board of Education. Serving on a board of education is definitely not an easy commitment, and Mr. Grande has given his time, his energy, and his heart to this role with sincerity and
purpose. Throughout his term, he has approached every conversation thoughtfully. listened respectfully to all perspectives and consistently kept the best interest of our students at the forefront of his decisions. His steady presence, willingness to ask meaningful
questions, and genuine care for our schools have made a positive impact on our district. Beyond the meetings and policies, his dedication and commitment to the Cedar Grove community has been evident in all that he did. On behalf of the entire board, I want to thank Mr.
Grande for his partnership, leadership, and service. We're grateful for the many ways he has contributed often behind the scenes to support our students, staff, and families. As his term comes to a close, we wish him all the very best in his next chapter and hope he knows his
service to the Cedar Grove community was very much appreciated. So, um, there will be a resolution that I will read when we, um, get to that portion of the meeting. >> Thank you, Mr. Mr. Brandy was an
outstanding member to work with. >> I think the community should know that his knowledge and expertise >> in the area of finance and bonds and facilities was was very very helpful to us in giving us guidance and direction
in a lot of areas. Dave will be missed as a board member. He was very, as you said, very conscientious and and a a very deep thinker about all the issues that we were dealing with. Thank you, Mr. >> Important Perspective.
>> Yes, absolutely. >> All right, Dr. T, hand it over to you. >> Thank you, Madam President, and good evening, Cedar Grove School Community. I would like to dedicate my full report this evening to providing our community with an update about the planning we
have done for the referendum that is needed to address critical infrastructure needs and the overcrowding at our end schools. As I have shared with the community over this past year, after significant community and stakeholder engagement, the most economically efficient and educationally
sound strategy to bring relief to the overcrowding at the end schools is to reopen LRP as a 345 school. We have spent the better part of the this past year exploring all possible options for the best and safest way to
reopen LRP and how to accommodate for how this reopening will impact traffic patterns around LRP. The results of a recent traffic study have made it more clear than ever that we cannot rely fully on Pompton Nav as the main access
point to in reopening LRP. Therefore, despite our best efforts to find an alternative to building an access road between LRP and Panther Park, we have now exhausted all alternatives and determined we will require an access road to be built between Panther Park
and LRP. This will require a strong partnership with the township and we look forward to building the outline for this partnership in the coming week. While the existence of LRP is a tremendous asset to our community, failure to build an access road will
likely lead to the eventual sale of LRP and more new development for Cedar Grove. I know many in our community are eagerly awaiting news about our referendum, which is why I thought it was important for me to provide this detailed update as we are at a critical
juncture in our planning. If the board is able to take action on the referendum at our January 6 board meeting, we will be able to meet the deadlines required for a March vote on all the referendum projects. After the January 6th board meeting, I will begin
to provide the committee with detailed information about all the projects in the referendum and how the referendum questions will be structured. At this time, the projects included in our referendum in total have already been awarded over $20 million in in state
aid. In closing, we are excited about the opportunity for for the upcoming opportunity for discussions with the township council and look forward to building a strong partnership in service to our wonderful community and the betterment of many future generations of
students and families. Lastly, before closing out my report, I would also like to acknowledge and express my appreciation and gratitude to board member David Grande for his dedication service to our community over the past three years. Mr. Grande brought great expertise in the area of financial
matters to our board and always proved to be a highly engaged and thoughtful board member. He will be missed. I would also just like to then end by wishing everyone a very merry Christmas and happy holiday season to all. And with that, I'll conclude my report.
>> Thank you, Dr. T. All right, let's move some business. >> Under the business administrator's report, can I have a motion for G1 through G14? >> So move. >> Second. Any discussion?
>> Roll call, please. >> Marzulo. >> Mr. Marzulo had to step up. >> Mr. >> Yes. >> Yes. >> Yes. >> Thank you. Under curriculum and and
instruction. Can I have a motion for H1? >> So moved. >> Second. >> Discussion. Roll call. Mr. >> Yes. >> Yes. >> Yes. >> Thank you.
under superintendent report general administration. Can I please have a motion for I1 through I6? >> So moved. >> Second. >> Any discussion under um I6 recognition of board member?
I'd just like to read that. Whereas David Grande has served as a member of the Cedar Grove Board of Education from January 2023. Whereas David Grande has performed his duties in an exemplary manner, maintaining the highest degree of professionalism and
commitment. And whereas the Cedar Grove Board of Education would like to express their deepest gratitude to David Grande for his dedication and service to the children and community of Cedar Grove. Now therefore, be it resolved that the Cedar Grove Board of Education extends their appreciation along with sincerest
of best wishes to David Grande. Any discussion? Roll call, please. >> Yes. >> Yes, but abstain from I3C. >> Yes.
>> Thank you. We good. >> First reading of the >> the softball trip. >> Yes. So for me, there's only two yes votes,
>> right? >> Okay. Yes. Are we good to move on? >> I don't know where we left off. >> We're going to be on J. >> Yeah. Yes. Okay. >> All right. And under human resources, a motion for J1 through J7.
So move >> second. >> Any discussion? >> Roll call, please. >> Mr. >> Yes. >> Yes. >> Yes. >> Thank you. And under special services, a
motion for K1. >> So move. Second. >> Any discussion? >> Roll call, please. >> Mr. Pallet, >> yes. >> Kegan, >> yes. Miss Dora,
>> yes. >> Motion passes. >> At this time, I'd like to open the meeting to public comment on any school related items. Seeing that there is nobody here, I move to close that portion of the meeting. Announcement of our future meetings. As Dr. Tia has
said, our next meeting will be January 6th at 6 7:30 will be the open meeting and it will also be our reorganization meeting as well. All right. Um motion to close. All in favor?
>> All right. Have a very nice holiday everyone >> and a happy new year and see you in January.