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Purpose of Review

The purpose of our review was to assess the Port Jervis City School District’s (District’s) progress, as of March 2025, in implementing our recommendations in the audit report Port Jervis City School District – Financial Condition (2022M-152), released in November 2022. 

The audit determined that the Board of Education (Board) and District officials did not effectively manage the District’s financial condition. They consistently overestimated general fund appropriations. As a result, the District levied more taxes than needed to fund operations and exceeded the 4 percent statutory limit by 26 percentage points. In addition, District officials made unbudgeted year-end transfers to reserves and the capital projects fund. The audit included six recommendations to help officials monitor and improve the effectively manage the District’s financial condition.

Background

The District serves the City of Port Jervis and the Towns of Deer Park and Mount Hope in Orange County and the Towns of Forestburgh and Mamakating in Sullivan County. The elected nine-member Board is responsible for managing the District’s financial and educational affairs. The Superintendent of Schools (Superintendent) is the District’s chief executive officer and is responsible, along with other administrative staff, for the District’s day-to-day management under the Board’s direction. The Board, Superintendent and Assistant Superintendent for Business are responsible for developing and monitoring the District’s annual budget. 

Results of Review

The District has made some progress implementing corrective action. Of the six audit recommendations, one recommendation was fully implemented, two recommendations were partially implemented, and three recommendations were not implemented.