The Port Washington School District is in sound financial shape, according to an independent audit presented at Tuesday’s, Oct. 7, board of education meeting, though auditors urged continued improvements in capital asset reporting. The board also wrestled with ongoing concerns over recent changes to high school grading policies.
Chris Schneider of R.S. Abrams, the district’s external auditing firm, told the board the district once again earned an “unmodified opinion”, the highest possible rating, on its financial statements.
“Most importantly, you received clean financial statements,” Schneider said. “That’s a big deal.”
The annual audit reviewed required financial statements, student activity funds, and governance letters. While last year’s audit flagged several problem areas, this year only one remained: ensuring the completeness and accuracy of capital asset records.
Schneider praised the business office for making “significant improvements” and said further refinements should be completed within the next year.
Board members sought clarity on the timeline. Schneider said the process is largely about reconciling capital project activity and emphasized that progress had been substantial. “Progress is progress,” he told trustees.
The audit also confirmed that the district remains in compliance with New York’s 4% cap on unassigned fund balances. Reserve funds earmarked for expenses such as employee retirement and capital needs were also in line with state regulations.
On the revenue side, the district saw increases in property tax collections and payments in lieu of taxes. Expenditures rose due to higher instructional costs, special education services, salary increases and health care premiums.
While the audit underscored fiscal stability, the board devoted significant time to a different kind of accountability: how student grades are calculated.
Superintendent Gaurav Passi reviewed updates to the high school grading policy, including lowering the weight for advanced placement and honors courses and removing Regents exam scores from final course grades.
Passi said the district consulted college admissions officers, who confirmed that the changes would not disadvantage students applying to selective universities.
“The response we received was universal and unequivocal,” Passi said. “A change in the GPA weighting system will have no impact on college admissions decisions.”
Still, trustees noted concerns raised by parents about fairness, particularly for students in the same cohort who could face different weighting systems depending on when they took certain courses. Trustee Deborah Brooks suggested phasing in the changes, starting with incoming ninth graders, to ensure consistency.
Ultimately, trustees agreed to send the issue to the board’s policy committee for further review.
“This is about making sure our policies reflect fairness and consistency across schools,” vice president Julie Epstein said.
The meeting also included recognition of Hispanic Heritage Month and National Principals Month, a budget calendar presentation that set the stage for the 2025–26 budget cycle, and an enrollment report showing 5,105 students this fall, down from 5,257 the previous year.
Despite the lengthy agenda, trustees said the audit results provided reassurance as the district begins budget planning and tackles policy debates.
“This shows we’re on the right track,” Epstein said. “It gives us confidence as we plan for the future.”
