May 19, 2014

Mr. Isaac Zlatkin, Board President

Lakewood Township Board o !d"cation
200 #a$sey %&en"e
Lakewood, '( 0)*01
+ear Mr. Zlatkin,
!nclosed please ind one copy o a re&iew o the Lakewood Township Board o !d"cation-s enroll$ent
data "sed or the %pplication or .tate .chool %id and +istrict #eport o Transported #esident .t"dents
as o /cto0er 14, 2011, /1%2 2ase 3.%%451514. Please distri0"te copies to all 0oard $e$0ers.
Based on the indin6s, the 17 201252018 state aid or$"la calc"lations were o&erstated as a res"lt o the
dierences noted on the %..% or +#T#. applications. Please reer to details contained in the report
or speciic inor$ation co&erin6 state aid or$"la chan6es totalin6 92,80),499. %ll inal state aid
ad:"st$ents are pendin6 the oicial response ro$ yo"r 0oard o ed"cation as detailed 0elow.
4tili;in6 the process o"tlined in the attached <Proced"res or L!%=%6ency #esponse, 2orrecti&e %ction
Plan and %ppeal Process,> yo"r 0oard o ed"cation is re?"ired, p"rs"ant to '.(.%.2. @%,28%5A.@, to
p"0licly re&iew and disc"ss the indin6s in this report at a p"0lic 0oard $eetin6 no later than 80 days
ater receipt o the report. Bithin 80 days o the p"0lic $eetin6, the 0oard $"st adopt a resol"tion
certiyin6 that the indin6s were disc"ssed in a p"0lic $eetin6 and appro&in6 a correcti&e action plan
which addresses the iss"es raised in the "ndisp"ted indin6s and=or an appeal o any indin6s in disp"te.
% copy o the resol"tion and the appro&ed correcti&e action plan and=or appeal $"st 0e sent to this oice
within 10 days o adoption 0y the 0oard to the attention o #o0ert /rtley, Mana6er o the .tate %id
%"dit 4nit. %lso, p"rs"ant to '.(.%.2. @%,28%5A.@CcD, yo" $"st post the indin6s o the report and the
0oard-s correcti&e action plan on yo"r 0oard o ed"cation we0site.
Thank yo" or yo"r cooperation.
.incerely,
#o0ert (. 2icchino
/ice o 1iscal %cco"nta0ility and 2o$pliance
#(2=rwo=0=l0=lakewoodassadrtrs10514511
%ttach$ent
Distribution
Patricia Mor6an
+a&id 2orso
#o0ert B"$p"s
7"t-se Tho$as
Michael 7aple
Elenn 1orney
Michael %;;ara
Fe&in +eh$er
#o0ert B. /rtley
Tho$as +owd
.tephen !ells
La"ra Binters
Tho$as +-%$0ola
Gelen To0ia
E"s Faka&as
+ieter P. Lerch, 2P%


STATE OF NEW JERSEY
DEPARTMENT OF EDUCATION
OFFICE OF FISCAL ACCOUNTABILITY AND COMPLIANCE
P.O. BOX 5
TRENTON! NEW JERSEY "#$5%5
RE&IEW OF T'E APPLICATION FOR STATE SC'OOL AID
RE&IEW OF T'E DISTRICT REPORT OF TRANSPORTED RESIDENTSTUDENTS
AS OF OCTOBER ()! $((
OFAC CASE *SAAU%(%()
LA+EWOOD TOWNS'IP BOARD OF EDUCATION
OCEAN COUNTY
$ RAMSEY A&ENUE
LA+EWOOD! NJ ",(

LA+EWOOD TOWNS'IP BOARD OF EDUCATION
OCEAN COUNTY
RE&IEW OF T'E APPLICATION FOR STATE SC'OOL AID
RE&IEW OF T'E DISTRICT REPORT OF TRANSPORTED RESIDENTSTUDENTS
AS OF OCTOBER ()! $((
OFAC CASE *SAAU%(%()
SCOPE
The re&iew &eriied st"dents on roll listed on the /cto0er 14, 2011 %pplication or .tate .chool %id
C%..%D with the district-s 'ew (ersey .chool #e6isters and s"pportin6 doc"$entation related to the
school district acco"ntin6 syste$. The re&iew &eriied the district-s enroll$ent co"nts or re6"lar and
special ed"cation st"dents. Total enroll$ent co"nts were &eriied or /n #oll 1"ll Ti$e and .hared
Ti$e, .ent 1"ll Ti$e and .hared Ti$e, #ecei&ed 1"ll Ti$e, and .ent to Pri&ate .chools or .t"dents
with +isa0ilities. Low Inco$e !nroll$ent, L!P .t"dents, and other appropriate cate6ories as
reported on the %..% were &eriied.
The re&iew also &eriied the data s"pportin6 transportation ser&ices pro&ided to st"dents as reported
on the +istrict #eport o Transported #esident .t"dents as o /cto0er 14, 2011.
FINDIN-S
On Ro.. Fu.. Ti/0
The district reported A,2@* st"dents. The /1%2 &eriied A,24) st"dents or a decrease o 19 st"dents
0ased on all st"dents recorded in the 'ew (ersey .chool #e6isters. .ee 6rade le&el dierences noted
on !Hhi0it %.
On Ro.. S12r03 Ti/0
The district reported 90 st"dents. The /1%2 &eriied 92 or an increase o two st"dents 0ased on all
st"dents recorded in the 'ew (ersey .chool #e6isters. .ee 6rade le&el dierences noted on !Hhi0it %.
S0nt Fu.. Ti/0
The district reported 12 st"dents, while the depart$ent &eriied i&e. The dierence o se&en was
ca"sed 0y a lack o s"0$itted s"pportin6 doc"$entation. +ierences are noted on !Hhi0it %.
S0nt S12r03 Ti/0
The district reported one st"dent. Gowe&er, no s"pportin6 doc"$entation was s"0$itted to &eriy the
identity o the st"dent.
R040i503 Fu.. Ti/0
The district reported one st"dent on the %..% which the depart$ent &eriied.
S0nt to R06ion2. D27 S41oo.s
The district reported three st"dents, which the depart$ent &eriied.
S0nt to Pri52t0 S41oo.s 8or Stu30nts 9it1 Dis2bi.iti0s
The district reported 1*4 st"dents, while the depart$ent &eriied 11). The decrease o A@ st"dents is a
res"lt o the depart$ent-s re&iew o the li$ited, inco$plete s"pportin6 doc"$entation. The re&iew
deter$ined there was $issin6 place$ent contracts and st"dent attendance records. In s"$$ary, the
disallowed st"dents are the res"lt o the ollowin6 conditions,
28 Mandated Pri&ate .chools or .t"dents Bith +isa0ilities 2ontracts were $issin6I
10 st"dent attendance records were $issin6 or /cto0er 14, 2011I
10 st"dent pay$ent &o"chers or /cto0er 2011 were $issin6I
two st"dents were enrolled ater /cto0er 14, 2011I and
2
LA+EWOOD TOWNS'IP BOARD OF EDUCATION
OCEAN COUNTY
RE&IEW OF T'E APPLICATION FOR STATE SC'OOL AID
RE&IEW OF T'E DISTRICT REPORT OF TRANSPORTED RESIDENTSTUDENTS
AS OF OCTOBER ()! $((
OFAC CASE *SAAU%(%()
11 st"dents were placed in nonp"0lic schools and apparently recei&ed <nonsectarian> special
ed"cation ser&ices. The district was "na0le to present doc"$entation or re&iew indicatin6
that these were allowa0le place$ents or state aid p"rposes. The st"dents were not placed
p"rs"ant to co"rt orders, ad$inistrati&e law decisions or co$$issioner-s appro&al in
accordance with P"0lic Law 19)9, chapter A2.
.ee !Hhi0it % or all dierences 0y 6rade le&el cate6ory.
Su//2r7 o8 R0si30nt Enro../0nt
%s a res"lt o the a0o&e, the /1%2 deter$ined that the district reported a total o A,81*.A #esident
st"dents, while the /1%2 &eriied A,288, or a decrease o )4.A #esident st"dents.
Lo9 In4o/0 Enro../0nt
The district reported 4,442 st"dents. The +/! &eriied 4,28A st"dents "sin6 a&aila0le low inco$e
enroll$ent listin6s and Master !li6i0ility Listin6s CM!LD that were s"0$itted in s"pport o the %..%
co"nt. The st"dents listed on the M!L were doc"$ented 0y a&aila0le $eal applications. Gowe&er,
the total o all eli6i0le F512 #esident .t"dents was o&erstated 0y the district d"e to the co"ntin6 o
non5eli6i0le preschool st"dents in the F512 #esident co"nt. .ee !Hhi0it % or a detailed sched"le o
the decrease o 20* Low Inco$e st"dents 0y 6rade le&el.
LEP Stu30nts
The district reported )48 L!P #esident st"dentsI *A8 Low Inco$e L!P st"dents, and 90 'ot Low
Inco$e L!P st"dents. The depart$ent &eriied *4* L!P #esident st"dentsI @*A Low Inco$e L!P
st"dents and *2 'ot Low Inco$e L!P st"dents. The total decrease o 9@ eli6i0le st"dents was
ca"sed 0y &ario"s actors. The total a$o"nt o st"dents s"0$itted or /1%2 re&iew did not reconcile
to the data s"0$itted on the %..%. In addition, the a$o"nt o st"dents eli6i0le or state aid was
red"ced d"e to a detailed re&iew o st"dents who were not eli6i0le 0ased on accepta0le test scores.
1inally, there were also red"ctions $ade or st"dents who were not /n #oll as o /cto0er 14, 2011 in
the 'ew (ersey .chool #e6isters. .ee !Hhi0it %.

8
LA+EWOOD TOWNS'IP BOARD OF EDUCATION
OCEAN COUNTY
RE&IEW OF T'E APPLICATION FOR STATE SC'OOL AID
RE&IEW OF T'E DISTRICT REPORT OF TRANSPORTED RESIDENTSTUDENTS
AS OF OCTOBER ()! $((
OFAC CASE *SAAU%(%()
Tr2ns:ort03 Stu30nts%R06u.2r 2n3 In Distri4t S:04i2. E3u42tion Stu30nts
The district reported 14,008 st"dents, while the /1%2 &eriied 18,@*@.A. The decrease o 82@.A
st"dents was ca"sed 0y $"ltiple actors in&ol&in6 inco$plete s"pportin6 doc"$entation.
+ed"ctions ro$ the s"0$itted co"nt were ca"sed 0y st"dents who were not /n #oll in
the 'ew (ersey .chool #e6isters as o /cto0er 14, 2011I st"dents who did not ha&e
transportation re?"ire$ents in the Indi&id"ali;ed !d"cation Pro6ra$s CI!PsD o the
st"dentsI and nonp"0lic transported and %id In Lie" st"dents who were not incl"ded on
B)T or$s as enrolled on /cto0er 14, 2011. The a"dit eHceptions ori6inally identiied
in .epte$0er o 2018 were 6reatly red"ced as a res"lt o the c"rrent ad$inistration-s
eorts to resol&e the a"dit eHceptions to a li$ited de6ree. 1inal ad:"st$ents were $ade
0ased on the /1%2 re&iew o the second s"0$ission o doc"$entation in +ece$0er
2018. .ee !Hhi0it B.
Tr2ns:ort03 Stu30nts%S:04i2. E3u42tion
The district reported 2@* st"dents, while the depart$ent &eriied 1*A.A. The decrease o 91.A st"dents
was ca"sed 0y $"ltiple actors in&ol&in6 inco$plete s"pportin6 doc"$entation.
+ed"ctions ro$ the s"0$itted co"nt were ca"sed 0y st"dents who were not /n #oll in
the 'ew (ersey .chool #e6isters as o /cto0er 14, 2011 and st"dents who did not ha&e
special needs transportation re?"ire$ents in the I!Ps o the st"dents. .ee !Hhi0it B.
Tr2ns:ort03 Stu30nts%Court0s7
The district reported 9,8@) st"dents, while the depart$ent &eriied 9,89).A. The net ad:"st$ent o
80.A st"dents was ca"sed in part 0y the district not co"ntin6 preschool transported
st"dents. In total, the district transported 9,89).A 2o"rtesy st"dents. % 6rand total o
&eriied transported st"dents or all cate6ories totaled 28,2A0.A st"dents. .ee !Hhi0it B.
CONCLUSION
The dierences in /n #oll, Low Inco$e #esident enroll$ent and L!P Low Inco$e and 'ot Low
Inco$e and Transported .t"dents res"lted in a potential decrease ad:"st$ent to cate6orical state
aid or$"la calc"lations totalin6 92,80),499. The ollowin6 sched"le ill"strates the potential
or$"la ad:"st$ents 0y cate6ory,
FY $($ %(; C2t06ori42. Ai3
!?"ali;ation %id C92,1)8,204D
.pecial !d"cation %id C @0,9@@D
.ec"rity %id C )4,*A8D
Transportation %id C 418,9*2D
%d:"st$ent or .ta0ili;ed #ed"ction 4)8,80)
."0total C92,2A9,A)*D
FY $((%$($ Pr0s41oo. Ai3
Preschool !d"cation %id C 4),912D
Total 'et I$pact C92,80),499D
4
LA+EWOOD TOWNS'IP BOARD OF EDUCATION
OCEAN COUNTY
RE&IEW OF T'E APPLICATION FOR STATE SC'OOL AID
RE&IEW OF T'E DISTRICT REPORT OF TRANSPORTED RESIDENTSTUDENTS
AS OF OCTOBER ()! $((
OFAC CASE *SAAU%(%()
EXTRAORDINARY AID APPLICATION FY $((%$($
The /1%2 a"dit o the !Htraordinary %id %pplication or .pecial !d"cation 2osts s"0$itted or 17
201152012 was coordinated with this re&iew 0y the /1%2. The indin6s are to 0e iss"ed as a
separate report o re&iew 0y the /1%2, identiied as /1%2 2ase3 .%%451%514.
C'APTER (<$=(<; AUXILIARY SER&ICES TO
NON PUBLIC STUDENTS FY $((%$($
The /1%2 is also cond"ctin6 an a"dit ollow "p o 2hapter 192 ser&ices and an a"dit o 2hapter 198
ser&ices reported on the 2hapter 192=198 Pro:ect 2o$pletion #eport CP2#D or 17 201152012. The
indin6s are to 0e iss"ed as a separate report o re&iew 0y the /1%2, identiied as /1%2 2ase3
.%%451B514
FOLLOW UP RE-ARDIN- PRIOR ASSA=DRTRS OFAC AUDITS
The /1%2 .tate %id %"dit 4nit C.%%4D cond"cted a detailed a"dit o the /cto0er 14, 200A %..%
and +#T#. reports o the Lakewood Township Board o !d"cation. The /1%2 reports iss"ed on
'o&e$0er 2@, 200* indicated widespread errors and "ns"0stantiated st"dent co"nts noted on all
%..% and +#T#. cate6ories. The %..%=+#T#. errors ro$ /cto0er 14, 200A wo"ld ha&e ca"sed
a red"ction o state aid totalin6 91,A2),@A). The +/! did not seek reco&ery o this a$o"nt 0eca"se
state aid calc"lations were not 0ased on the /cto0er 14, 200A data or 'ew (ersey school districts
0ased on le6islati&e lan6"a6e in the ann"al state 0"d6et or 17 200@5200*. %t the ti$e o the /1%2
a"dit, state aid was 0ased on the /cto0er 1A, 2000 %..% and +#T#. data. Gowe&er, the /1%2
a"dit ill"strated the potential or si6niicant state aid red"ctions. Gad the erroneo"sly s"0$itted
/cto0er 14, 200A %..%=+#T#. data 0een "sed to calc"late act"al state aid "sin6 the or$"la
applica0le at that ti$e the depart$ent wo"ld ha&e so"6ht to reco&er 91,A2),@A).
In response to the /1%2 report iss"ed on 'o&e$0er 2@, 200*, the 0oard s"0$itted a correcti&e action
plan C2%PD containin6 ass"rances that proced"res wo"ld 0e i$ple$ented to ens"re acc"rate data
s"0$issions on s"0se?"ent %..%=+#T#. trans$issions. %s noted 0y the contin"ed widespread
errors that were identiied on the /cto0er 14, 2011 %..% and +#T#., senior ad$inistration
responsi0le or s"0$ission o this data d"rin6 the 200A5200@ and 201152012 school years, ailed to
i$ple$ent i$pro&e$ents to recordkeepin6 proced"res associated with the s"0$ission o the %..%
and +#T#..
The /1%2 concl"des that contin"ed errors occ"rred, despite ass"rances $ade 0y past senior
ad$inistration oicials no lon6er e$ployed 0y the 0oard, on past correcti&e action plans incl"ded in
the 0oard-s response to the /cto0er 14, 200A %..% and +#T#. a"dits iss"ed 0y the /1%2 in
'o&e$0er 2@, 200*.
A
LA+EWOOD TOWNS'IP BOARD OF EDUCATION
OCEAN COUNTY
RE&IEW OF T'E APPLICATION FOR STATE SC'OOL AID
RE&IEW OF T'E DISTRICT REPORT OF TRANSPORTED RESIDENTSTUDENTS
AS OF OCTOBER ()! $((
OFAC CASE *SAAU%(%()
RECOMMENDATIONS
The /1%2 reco$$ends that,
1. the district "lly "tili;es the syste$ o 'ew (ersey .chool #e6isters that are $aintained at the
ti$e o the ann"al /cto0er 1A %..% s"0$ission. This is to 0e retained as s"pportin6
doc"$entation or "t"re a"dits o the /n #oll co"ntsI
2. the district ens"res that only those st"dents who are acti&ely enrolled as o /cto0er 1A each
year 0e reported on the %..% data s"0$issionI
8. the district ens"res that all %..% workpapers are $aintained properly to s"pport eHact co"nts
o each and e&ery p"0lic school st"dent sent o"t o districtI
4. the district co$pares all st"dents listed on the 'ational .chool L"nch Pro6ra$ Master
!li6i0ility List or Beneit Inor$ation +eter$ination to the Low Inco$e enroll$ent s"0$itted
on the %..%I
A. the district $aintains s"pportin6 testin6 doc"$entation or all st"dents recei&in6 L!P ser&ices
and that the doc"$entation 0e a&aila0le or re&iewI
@. only st"dents who are transported as o /cto0er 1A, are to 0e cate6ori;ed and reported on the
+#T#. accordin6 to the .pecial 'eeds re?"ire$ents as relected in I!P inor$ationI
*. only st"dents who are &eriied to B)T or$s as o /cto0er 1A, are to 0e reported on the
+#T#.I and
). %id In Lie" pay$ents are to 0e $ade only or st"dents who are &eriied to B)T or$s as o
/cto0er 1A.
."0$itted 0y, %ppro&ed 0y,
#o0ert B. /rtley, Mana6er #o0ert (. 2icchino, +irector
.tate %id %"dit 4nit /ice o 1iscal %cco"nta0ility and 2o$pliance
@