The Roselle Board of Education in Union County is facing financial challenges, including unpaid taxes and penalties from the Internal Revenue Service (IRS). During a recent meeting, the board accepted an audit and corrective action plan from Lerch, Vinci & Bliss, aimed at addressing these issues. The exact amount owed to the IRS remains undisclosed, and officials have not commented on the matter. The district is working closely with the IRS to resolve outstanding tax obligations and improve its financial management practices.

In response to the audit findings, the school district has taken steps to address multiple financial discrepancies. One of the primary concerns highlighted by the accounting firm was the failure to make proper federal tax deposits and file necessary quarterly forms. This oversight resulted in interest and penalties being assessed by the IRS. To rectify the situation, the district has initiated discussions with the IRS to negotiate a resolution for the outstanding tax liabilities. Additionally, they are exploring options for penalty and interest abatement where applicable.

Further financial irregularities were identified in the audit report. The district allowed employee payroll withholdings to remain in the payroll agency account without timely transfers. There was also a lack of documentation for various items, such as bid contract awards and business registration certificates. Moreover, spending on special education transportation exceeded available funds by over $1.5 million, and required county approvals for budget transfers were not obtained. These oversights underscore the need for improved financial oversight and reporting within the district.

To enhance financial transparency and accountability, the district has implemented several recommendations from the audit. They include reviewing and reconciling outstanding payroll deductions, maintaining accurate records of accumulated sick and vacation time, and ensuring budgets align with actual expenditures. By adopting these measures, the district aims to restore fiscal integrity and prevent future financial missteps. The hiring of a tax consultant is also under consideration to assist in resolving the ongoing tax issues.

The district's proactive approach to addressing these financial challenges demonstrates a commitment to resolving past errors and implementing robust financial practices. Moving forward, the focus will be on improving internal controls and ensuring compliance with all regulatory requirements. Through these efforts, the Roselle School District seeks to regain public trust and ensure the financial stability needed to support its educational mission.