The Hicksville School District received the official "Report of Examination" of the Energy Performance contract (cogeneration) from the Office of the NYS Comptroller, Carl McCall, on or about Aug. 13. Under the caption "Current Status of Energy Performance Contract," the report indicates that the guaranteed annual saving for calendar year 1998 was not realized and that the annual shortfall, as calculated and reported by Central Hudson Enterprises Corp. (CHEC), was $35,950. When questioned at a recent school board meeting by a concerned taxpayer, the school district's attorney stated that the shortfall would probably exceed $35,950.

In addition, the State Comptroller's Office found fault with the cogeneration bidding process and made specific recommendations to deal with this problem.

Apparently, the concern of taxpayers that resulted in the audit of cogeneration by the NYS Comptroller's Office has finally caused the Hicksville School District to face this issue. I base my conclusion on an examination of the following documents that I obtained from the school district under the Freedom of Information Law:

1 - A three page letter dated Aug. 5 from the district's former chief business administrator to CHEC detailing the school district's refusal to accept CHEC's analysis of energy saving achieved for the 1998 calendar year. On page 2 of this letter 12 "errors and/or assumptions" in CHEC's analysis of savings are mentioned.

2 - A two page letter dated Aug. 20 from the district's independent auditor, to the district's former chief business administrator, in which she calls attention to 41 "errors or inconsistencies" in the Tables used by CHEC to calculate the energy savings for 1998.

3 - A two page letter dated Sept. 24 from the superintendent to CHEC, in which he "memorializes key items," of a meeting with CHEC officials that took place in the school district office on the previous day.

It is gratifying to see that the district is finally addressing the cogeneration issue. However, I continue to be concerned about the final outcome.

In an unrelated event, School Board Trustee Peggy Theis questioned the district's independent auditor at the Sept. 29 school board meeting regarding a reported $8.5 million increase in the district's indebtedness for retiree benefits. I found the auditor's response woefully lacking. I hope a more detailed explanation will be forthcoming.

Thomas Walsh