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The Niagara Falls School Board accepted an independent audit report showing the district ended the 2003-04 school year with a $1.2 million surplus and received a clean bill of fiscal health from an independent auditor.

Stephen L. Kling of Simpson, Kling, Quarantillo & Frosolone CPAs, the auditor, said, "The board and administration have done an excellent job managing district money over the past year."

Kling said the only problem the school district had to address was making student clubs and single activity groups follow prescribed rules in forming organizations -- even for short-term activities like field trips -- and handling money, because the board has to have a way of accounting for any cash the organizations raise and spend as mandated by the state. While they did nothing illegal or unethical, eight groups at Niagara Falls High School and Gaskill Middle School conducted business without following regulations last year, Kling said.

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