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Audit: Jersey Shore Area School District posts healthy reserves; single-audit opinions unmodified
Summary
Independent auditors Baker Tilly reported unmodified opinions on the district's June 30, 2024 financial statements and federal program compliance, highlighted a $10.4 million general-fund balance and said auditors found no material weaknesses.
Baker Tilly auditors told the Jersey Shore Area School District board on Jan. 13 that the district's fiscal-year 2024 financial statements and its major federal program compliance received unmodified opinions and that the district ended June 30, 2024, with a $10.4 million general-fund balance.
The audit presentation, delivered by John Compton and Rebecca Swales of Baker Tilly, summarized the audit and a single-audit testing of federal awards. The auditors said the opinion on the financial statements was “unmodified,” meaning the statements were fairly presented in all material respects, and the federal award compliance opinion was also unmodified.
The audit matters because they provide external assurance about the district's financial position and program compliance as the board begins its budget process. Compton said the district's general-fund balance of $10.4 million at June 30, 2024, exceeded the Government Finance Officers Association benchmark of roughly two months of expenditures (about $7.9 million under the district's 2024–25 budget).
Baker Tilly's presentation broke the fund balance into categories the board uses for planning: about $4.2 million committed for specific purposes, roughly $292,000 nonspendable (inventory/prepaids) and about $5.9 million unassigned. Compton noted those figures are a snapshot as of June 30, 2024.
The auditors also reviewed revenue and spending trends: state revenue made up about 53% of general-fund revenue in fiscal 2024, local revenue about 42% and federal about 5%. Instruction represented roughly 64% of expenditures (about $30.5 million), and support services about 28% (about $13.2 million). Long-term debt outstanding at June 30, 2024, was about $17.4 million across three general-obligation bond series, with no new borrowings in fiscal 2024.
On federal awards, the district expended about $3.9 million in federal financial assistance in fiscal 2024. Because the district is considered a low-risk auditee, auditors sampled 20% of federal funds and tested ESSER (education stabilization) funds and the child nutrition cluster; no compliance exceptions were reported.
Becky Swales said the audit produced no internal-control findings, no material weaknesses and no reportable compliance findings. The auditors noted new GASB standards that were effective in fiscal 2024 had little or no effect on the district's statements and flagged GASB Statement 101 (compensated absences) as an upcoming standard that may affect fiscal 2025 reporting.
Compton and Swales closed by noting the full audit report and required communications are available in the materials supplied to the board and offered to answer follow-up questions.
