Northern Lebanon School Directors receive clean audit, approve routine finance and personnel items; construction work continues

The Northern Lebanon School District Board of Directors received an unmodified ("clean") audit opinion for fiscal year 2024 and approved routine business items including authorization to prepare for the district’s next bond issuance at its Jan. 14 regular meeting.

The district’s auditor, Alex Frang, told the board the auditors issued "an unmodified or clean audit opinion for the year" and recorded no deficiencies or material weaknesses. He also said the district’s single audit — required because federal spending exceeded the $750,000 threshold — produced no findings after tests that included IDEA and ESSER grants.

The audit showed the general fund had a fund balance of about $16,000,000, an increase of roughly $9,900,000 from the prior year; about $950,000 of that was reported as committed for future operations and about $713,000 as nonspendable. The audit reported $9,300,000 assigned for other projects. The Capital Projects Fund increased by about $14,500,000, driven mainly by new debt issuances. Revenues exceeded the budget by about $4,900,000 and expenditures by about $3,100,000; the budget had been presented with an $8,300,000 surplus while the actual increase in fund balance was about $9,900,000. Frang said the district made required pension and related payments.

Frang summarized liabilities and capital assets: the district reported approximately $66,000,000 in net capital assets (a decrease of about $10,500,000, driven by building sales and a revaluation), a net pension liability (PSERS) around $48,000,000 (a decrease of about $1,400,000), and an OPEB liability near $4,300,000 (an increase of about $66,000). He also noted bonds outstanding increased by about $28,000,000 because of recent issuances.

Board members asked procedural questions about timing and distribution of the final audit. Frang said he expected the finalized report to be complete "by the end of next week" and available electronically, with printed copies available on request.

On action items the board approved several routine consent and personnel actions by voice vote, including minutes, student-activity counts, cash disbursements, and a set of human-resources items. The board also authorized district staff to work with PFM Financial Advisors and begin preparations for the next bond and approved the district’s list of depositories.

Superintendent Dr. Messinger briefed the board on construction and short-term needs related to the building project. He said much of the secondary administrative team, custodial, maintenance and teaching staff have moved into renovated spaces in the “200 hall,” and that punch-list work and remaining finish items are ongoing. He reported the curtain wall on the south side of the building had been removed and asbestos abatement completed; block work on the new exterior will begin once temporary heat is functioning. Messinger said the board will see a parameter resolution in February and a bond sale in April and that he will place a motion on the February agenda to transfer general-fund monies to continue construction payments: "I will have that motion on the agenda for you all next month because we need that money to continue paying our construction at this time," he said.

Votes at a glance • Motion to adopt the meeting agenda — Mover: Director Murray; Second: Director England. Outcome: approved (unanimous voice vote). • Approval of items 7.1–7.4 (minutes, student activity count, cash disbursements) — Mover: Director Murray; Second: Director Blau. Outcome: approved (unanimous voice vote). • Authorization to work with PFM Financial Advisors and list district depositories (8.1–8.2) — Mover: Director England; Second: Director Blau. Outcome: approved (unanimous voice vote). • Building & grounds items (9.1 summer student crew hires; 9.2 trash removal contract renewal) — Mover: Director Blau; Second: Director Klein. Outcome: approved (unanimous voice vote). • Extracurricular and trip approvals (10.1 coaches/volunteers; 10.2 TSA state conference) — Mover: Director Murray; Second: Director England. Outcome: approved (voice vote). Item 10.1 subsection 2 recorded one abstention (Director Klein); all other votes were in favor. • Human resources items (11.1–11.6: long-term substitutes, resignations, column movements, advisors, mentors, substitute list changes) — Mover: Director England; Second: Director Moyer. Outcome: approved (unanimous voice vote). • Motion to adjourn — Mover: Director Blau; Second: Director Murray. Outcome: approved (unanimous voice vote).

The board was unanimous on most votes. Where roll-call detail was not recorded in the transcript, the presiding officer announced votes would be recorded as unanimous unless otherwise noted. The board and auditors indicated full cooperation from district finance staff; Frang singled out "Leanne and her team" for assistance during the audit.

Why it matters: the clean audit and lack of single-audit findings reduce near-term compliance risk and support the district’s stated plan to use proceeds from building sales and new debt to continue construction. Board approval to proceed with bond preparations starts the formal schedule that will lead to a parameter resolution in February and, if approved later, a bond sale that the superintendent said is expected to close in April.

Upcoming: the board will receive a parameter-resolution presentation in February from the district’s financial advisor and vote on formal bond documents in March or April; the superintendent plans a fund-transfer motion for the February agenda to keep construction payments current.