by Gabe Donio, Gazette Staff Writer

HAMMONTON—The Hammonton Board of Education publicly received a forensic audit of the school district’s finances for the period of July 1, 2004 to June 30, 2006 during the board’s regular meeting of March 13.
According to the audit, it was an era when large deficits occurred and significant mismanagement reigned in the board business office.
In addition, the audit stated that the board of education and the county superintendent “do not properly utilize the monthly Board Secretary Reports to adequately assess the financial position of the district.”
The forensic audit was conducted by the New Jersey State Legislature Office of Legislative Services Office of the State Auditor “to determine the primary factors that contributed to the district’s fiscal year 2005 and fiscal year 2006 year-end general fund deficits of $454,000 and $2,186,000, respectively.”
According to the audit, a lack of oversight by the board and county superintendent helped contribute to the financial problems of the district, in addition to mismanagement by the board business office, which at the time was run by former Hammonton Board of Education Business Administrator Lesley Motz. Motz has since left the district, and has been replaced by Barbara Prettyman.
According to the audit, fund transfers did not receive proper approval from the board.
“We found that the business office did not obtain proper approvals for fund transfers. A proper review of the Board Secretary Reports would have identified the increases or decreases of appropriations (transfers). The board and county superintendent should have questioned these transfers,” the forensic audit said.
A recommendation was made by the state audit regarding the fund transfers.
“We recommend that the board and county superintendent review the Board Secretary Reports and investigate transfers and accounts with insufficient funding. In addition, transfers should be approved by the board,” the forensic audit said.
In addition to the board and county superintendent’s failure to properly review the budget transfers, several other lapses in accounting and management which resulted in substantial deficits in fiscal year 2005 and 2006 at the Hammonton School District were detailed by the audit report. The forensic audit is available in its entirety here: SCHOOL AUDIT.

“We found that accounting errors for deferred health benefit payments and budgeting errors related to transportation services and the child study team were the main cause of the general fund deficit in fiscal year 2005.
“We found that the preparation and approval of a budget that was insufficient to meet the cost of district programs and services and inadequate fiscal management practices in the district’s business office caused the general fund deficit in fiscal year 2006,” the forensic audit said.
Prettyman reviewed the audit with the board during the public portion of the meeting on March 13 and commented on the findings.
“From what I understand, several of these positions had to do with special education aides . . . those staff were not included in the budget,” Prettyman said.
Prettyman was blunt in her criticism of the board business office and her predecessor.
“It was sloppy recordkeeping, poor performance in the business office and a failure to keep good records,” Prettyman said.
According to Prettyman, no findings of criminal activity regarding public funds were revealed in the audit.
“They did not say anyone benefited or any funds were taken,” Prettyman said.
Hammonton Board of Education President Loretta Rehmann, who was president of the board during the years noted in the forensic audit, also commented on the lack of crime associated with the mismanagement detailed in the forensic audit.
“When you hear the word ‘forensic’ you think a crime has been committed. That was not the case,” Rehmann said.
Board solicitor William Donio did not comment on the audit during the public meeting.
Rehmann said the board would look to the future, and assured the public that the district had dealt with its fiscal problems.
“I’m very happy to say that all of the items here are no longer a problem for the district . . . we have put our financial house in order. We have cleaned up our act. This will never happen again,” Rehmann said.
Board member Johanna Johnson said it was time for the district to move forward.
“With this report, this should now put this issue to bed, so the district may focus on the future,” Johnson said.
Board member Ralph Condo, who represents Waterford Twp., asked if the county superintendent had adequately reviewed the budget.
No other board members commented publicly about the audit during the meeting.