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School board accepts clean audit showing $68.2 million negative net position driven by long-term liabilities
Summary
External auditors presented a clean opinion on the district's financial statements and single-audit reports; the audit shows a $68.2 million negative net position driven by long-term debt, pension and OPEB liabilities. The board voted to accept the audit.
East Stroudsburg Area SD trustees voted to accept the district's 2024 audited financial statements and federal single-audit after a presentation by Zelopoff & Axelrod.
Auditors told the board the firm issued a clean opinion on the financial statements and on federal program testing. Auditor Rachel Bowdger said the district's combined governmental and business-type activities show a negative net position of about $68,200,000, reflecting long-term debt, pension liabilities and other post-employment benefits (OPEB).
The auditors summarized key balances and trends at the fund level: the general fund reported a fund balance of about $51,000,000 with roughly $3.9 million unassigned; the capital projects fund had a decrease in fund balance of about $5,300,000; and the food service enterprise fund showed a negative net position of roughly $730,000. The district's outstanding long-term debt was reported near $85,000,000; total net pension liability was presented as about $205,000,000; and OPEB liabilities were listed in separate schedules (auditors cited $8,300,000 for the state pension OPEB component and about $24,600,000 for the district-only OPEB plan).
Bowdger highlighted that general fund revenues came in about $2,300,000 over budget while expenditures were about $4,600,000 under budget, and that required schedules for pensions and OPEB are included. The single-audit review of major federal programs, including IDEA (special education) clusters and ESSER/ARP funds, resulted in a clean opinion.
A motion to accept the audit was made and seconded; the board voted "Aye" and the motion passed.
The auditors noted upcoming accounting standard changes and the need to monitor compensated-absence disclosures for next year's statements. Board members asked staff to follow up with finance personnel on timing and impacts of those changes.
