Harrisburg auditors issue clean opinion for 2023-24; district moves millions into capital reserve and self‑insurance fund

Carl Hogan, the engagement partner for the district's auditors, presented the Harrisburg City School District's fiscal year 2023–24 audit during the Committee of the Whole meeting on Feb. 11, 2025. Hogan told the board the firm issued an unmodified (clean) audit opinion for the year ended June 30, 2024.

Hogan emphasized that a clean opinion means the financial statements were fairly presented and that the audit did not contain modifications. “The audit report is a clean audit report, unmodified audit opinion,” he said. He also flagged the required supplementary information (management’s discussion and analysis) as important context for board members and the public.

The auditor reviewed general fund revenue and expenditure drivers. Local revenue, Hogan said, came in better than budget mainly because current earned income taxes performed stronger than anticipated and investment earnings were higher than expected; current real estate taxes were slightly below budget. Federal revenues were lower than budgeted, largely because federal‑funded projects (including American Rescue Plan Act projects) were reimbursable and timing of project spending reduced federal revenue recognized in the year.

On expenditures the auditor said salaries and benefits were slightly under budget in some areas because positions were not filled during the year; that in turn reduced related state reimbursements. Hogan reported the district transferred nearly $9 million from operations to the capital projects/capital reserve fund and transferred about $2 million into an internal service fund established to pay volatile self‑insurance claims.

Hogan noted the district is subject to the federal single‑audit requirement because it expends more than $750,000 of federal funds annually. He said the single‑audit work for this year “was manageable” and that the auditor found no material weaknesses or significant deficiencies in internal controls at the level that would require an adverse finding.

The auditor reviewed capital projects activity, including recent work on EJAC projects and Steel Elementary renovations, and explained the capital reserve fund and bond proceeds structure. Hogan said the district’s approach — keeping an unassigned fund balance target and moving excess to capital reserves and the internal service fund — gives the district flexibility to fund capital needs without immediate borrowing.

The audit presentation was delivered as an informational item. The business office later included a recommendation to accept the audited financial statements on the district’s Feb. 25 agenda; the audit acceptance itself was not voted during the Feb. 11 Committee meeting.

Ending

Board members asked clarifying questions during and after the presentation about historic fund‑balance trajectories, how COVID‑era funds were used, and the district’s internal service fund. The audit file and management’s discussion will be posted with the district’s annual financial report as part of the normal public record.