State audit flags financials in North Rockland school district as officials push back
The audit states that the North Rockland school board and district administrators overestimated certain budget appropriations while underestimating some revenue sources over several years. District officials, however, disagree with the findings and are defending their fiscal decisions.
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A 27-page New York State Comptroller’s Office report found financial management issues within the North Rockland Central School District.
The audit states that the North Rockland school board and district administrators overestimated certain budget appropriations while underestimating some revenue sources over several years. Ultimately, the comptroller found the district accumulated what it called a “significant fund balance.”
The review examined district finances from July 2019 through June 2024. The comptroller’s office issued eight recommendations, including creating budgets with more reasonable estimates and developing a formal plan to reduce surplus fund balance levels.
The report also included a written letter response from Superintendent Dr. Kris Felicello, who disagreed with the audit’s conclusions and defended the district’s financial decisions.
Felicello released the following statement:
"During the period of the Comptroller’s audit, NRCSD is proud of the fact that it significantly increased revenues through intentional and responsible strategies - most notably by securing more than $50 million in competitive grants, maximizing participation in state and federal programs, and employing creative fiscal and programmatic approaches designed to strengthen the District’s financial position. These efforts were not accidental; they were the result of deliberate planning, expertise and hard work.
At the same time, NRCSD worked aggressively to control costs by negotiating fair pricing, completing projects in-house when appropriate and avoiding the common and counterproductive practice of spending down funds at the end of the fiscal year simply to avoid exceeding the 4% fund balance limit. Instead, the District made the prudent decision to establish a voter-approved capital reserve, allowing it to use public funds transparently and thoughtfully.
Importantly, all of these strategies have been shared openly and consistently with the public, including detailed budget presentations twice per month from January through May every year, ensuring multiple opportunities for community members to understand, question and engage with our fiscal planning. In addition, this information is regularly communicated through Board of Education meetings, social media, the weekly "North Rockland Update" e-newsletter and the District website, reinforcing our commitment to transparency and public accountability.
Despite unprecedented pandemic-related financial uncertainties faced by the District during the OSC’s audit period, our Board and administrative team produced budgets that lowered the tax levy - making NRCSD the only school district in all of New York State to NOT raise the tax levy over the past six consecutive years.
As a result, and without raising taxes or seeking additional funds through a referendum, the District has been able to make transformative capital investments, including air conditioning in all buildings, state-of-the-art athletic facilities, outdoor learning spaces, roofs, windows, expanded parking, playgrounds and more - improvements that directly benefit students, staff and the greater community.
To criticize these outcomes as a failure of fiscal planning feels less like constructive feedback and more like being penalized for responsible, effective leadership."
The comptroller’s office says the audit was initiated after hearing from taxpayers. The review began in April 2024 and was released last month.
State officials say the district must submit a corrective action plan by March 5, 2026. The school board and district administration tell News 12 they are currently working on that plan together.
Read the full audit report here.
