Why did Old Guard BoE pad "Legal Reserve" with millions?

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In 2006, why did the BoE have a $2,560,104 balance in its Legal Reserve?  

• In 2007,the BoE had spent or transferred   $105,847 from the Legal Reserve.
• In 2008,the BoE had spent or transferred   $1,293,910 from the Legal Reserve.
• In 2009,the BoE had spent or transferred   $1,564,121 from the Legal Reserve.

$2.56M is an extraordinary amount of loot to keep in a school's Legal Reserve fund.   $1.5M was spent/transferred.  Where did this money go? 

Can the answer be found in the KPMG audit of the Hoboken BoE, for the period spanning from July 1 2004 - June 30, 2006?   

GA has spilled much cyber-ink on this audit.   I consider it a primer on why those affiliated with  the "Dark Side" political faction must never be allowed control of the board-  as hard as they may try.
See below for the following.

In 2005-2007 according to the audit,  Hoboken BoE wrote purchase orders to itself, listing itself as the "vendor"  totaling $568,965.91*.  

The 2005-2007  according to the audit, the "vendor" Hoboken BoE paid  itself $63,700.22*.

*Note: KPMG audited a SAMPLE of the total P.Os, meaning  the full amount the BoE billed and paid itself is not known.

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Does the KPMG audit  answer why the 'Old Guard' BoE plumped up it's legal reserve to astronomical proportion (ignoring it' maintenance reserve) in 2005-2006?

GA has no idea. But...

WHY did the Board write huge P.O's to itself, then pay itself?
 .
WHY wasn't this money put back into Hoboken classrooms? 

Why did Kids First (and other Reform slates to follow) inherit the schools in such a neglected state- a MESS?

No participant to these questionable expenditures but Anthony Petrosino currently offers commentary about the Hoboken School district.  Maybe he can answer those questions. 

BoE Trustee Jack Raslowsky was hired as Hoboken Superintendent in 2007.Anthony Petrosino was hired to serve as his assistant without a contract.   In 2008-2009, Petrosino taught a class in Austin, Texas while maintaining his full time position in Hoboken for which he was paid $144.5K/year.