By Hank Russell
With a school board meeting slated for tonight, a group of residents comprised of parents, students and community members from the South Country School District are calling on New York State Comptroller Tom DiNapoli’s office to conduct a full, independent audit of the district’s finances. They cite consecutive years of budget crises and staff layoffs.
Signed by 158 individuals connected to the district, including 13 current students, the open letter was delivered to DiNapoli office via email on October 15. Calling for financial transparency, accountability, and technical expertise, the letter calls for New York State to conduct an audit of “our school district’s ability to meet the needs of our learners and families.”
LILP also reached out to the comptroller’s office. A spokesperson said they will respond once they review the letter.
In recent years, South Country schools have faced financial instability, according to the residents. In 2022, news broke of a district-wide structural budget deficit when the Board of Education was “unaware” of a ten-year “mismatch” between New York State building aid and bond payments. The residents claimed that the district lacked the accounting practices to track its 20-year bond and 15-year state building aid payments, creating a fiscal cliff at the end of New York State building aid reimbursements. A transparent plan to address this deficit never materialized, although the Superintendent and Assistant Superintendent of Finance left the district, and the instructional budget was cut by $2.4 million.
Around this time, the South Country Shores Civic Association wrote to Comptroller DiNapoli requesting a state audit of the South Country School District. In a copy of the February 24, 2022 letter obtained by Long Island Life & Politics, Ed Lenahan, the civic association’s president, said his group “recently learned of an impending tax increase that is greater than usual and will significantly impact our community.”
Lenahan expressed concern about the time when, before South Country was to be paid $120 million Caithness over a 20-year period as part of the PILOT (Payment in Lieu of Taxes) agreement, but the district took out $100 million in bonds for capital improvements.
During an April 23, 2025 Board of Education meeting, the district announced a fiscal crisis due to “steep and unforeseen expenses in costs” on top of the known structural budget deficit, resulting in dozens of educator positions being eliminated. The Superintendent claimed that “every budget line” was “combed through” and the District “spared no expense in looking at every expenditure, looking at every contract, every consultant… before we looked at staffing cuts.”
But a few months later, in September 2025, the community was presented with a new budget crisis – the board of education announced that the school district spent more money than it had budgeted in 2024-25. Without publicly disclosing the magnitude of overspending, the Board of Education hired another consulting firm, Investigative Management Group, to conduct a “forensic audit.” The assistant superintendent of finance was replaced with an interim assistant superintendent of finance, who was hired through a consulting contract with Belfor Property Management.
Now, parents, students and community members are publicly requesting a state audit to break the pattern of instability, lack of transparency, and reliance on short-term consultants that have characterized the school district’s financial planning in recent years. “Our children, educators, and community deserve no less,” the signatories stated.
“Unfortunately, the district refuses to have an open and transparent conversation surrounding our financial future,” said Kerim Odekon, who has two children in the district. “Year after year, we are confronted with budget crises where the solution is to cut teaching staff and reduce educational programs. All assessments — including those by NYS — show South Country students need more support, not less.”
Shannon Woods, another parent, added, “Our district students and teachers are strong, the district needs the Comptroller’s independent oversight and technical assistance to continue to support our diverse student body and communities to help strengthen our community. Our schools are our future.”
Abena Asare, a district parent said the school board relies on a “churn” of finance directors and consultants who “do not address the financial problems and leave when the problems persist or get worse. Now, the students have been told that field trips, excursions, and their beloved teachers are threatened and being cut. We are hoping the state can step in with steady technical expertise and support for our district.”
“I truly believe our children and educators deserve better — full resources, real accountability, and honest transparency in our school district,” said another parent, Khadija Yanni. “When we commit to that, we’re not just improving education; we’re shaping a better nation.”
LILP reached out to South Country and was referred to the district’s public relations firm, which provided this reporter three letters the board sent to district residents.
In one letter sent on October 10, 2025, the board acknowledged that they hired IMG to conduct a forensic audit. They said the audit would be completed “in the near future,” but, once it is completed and reviewed by the board, it will be available for public view at the next board meeting and on the district’s website.
“Though IMG’s work has begun, we do not yet know the exact amount our expenses exceeded
our approved 2024-2025 budget,” board president E. Anne Hayes. We know this is frustrating and concerning to the community; please know that it is very much frustrating and concerning to us on the Board as well. … [W]e want to reiterate our commitment to clarity, transparency, and best practices in all areas of district operations, including our financial office.”