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Preliminary audit shows $500,000 drop in general fund balance; district flags roof expense and state budget uncertainty
Summary
Business staff told the board a preliminary audit shows the district’s general fund balance fell from $17.2 million (6/30/2024) to $16.7 million (6/30/2025), a roughly $500,000 decrease the presenter attributed largely to a $1,214,000 James Byrd roof expense. Staff said auditors will finalize numbers in January and noted uncertainty in the 2025–26
The district’s finance presenter briefed the board on preliminary audit figures and state budget developments that could affect the 2025–26 budget.
"This is updated as of 06/30/2024," the presenter said, then explained the updated balance as of 06/30/2025. The general fund balance decreased from about $17.2 million to $16.7 million, a roughly $500,000 difference the presenter attributed in large part to a $1,214,000 bill for the James Byrd roof that was paid from the general fund. The presenter called the numbers preliminary and said auditors will be in January to finalize the audit.
The presenter walked trustees through cash‑flow considerations and noted that the district’s operational budgets remain within plan aside from one‑time capital spending. He also discussed possible near‑term revenue from transfer taxes tied to warehouse construction in Southampton Township; past warehouse transfers generated large one‑time receipts in the district. The presenter said any such windfall would appear when transfers are complete and could be material but are not guaranteed.
On state funding, staff reviewed the delayed 2025–26 state budget discussions and the district’s preliminary estimates. The packet included a Pasbo summary showing categories such as basic education, special education and "ready to learn" (adequacy) funding under various proposals; staff noted cyber‑charter tuition reforms discussed at the state level were unlikely to pass in their proposed flat‑fee form. The presenter said the district’s cyber‑charter tuition expense is north of $4 million and that the state provided a cyber‑charter transition subsidy of about $220,000 in the current year.
Board members asked about timing and magnitudes of transfer‑tax receipts and the Act 1 adjusted index for 2026–27. Staff said the Act 1 adjusted index for the district came in at 4.7 percent. Staff emphasized the preliminary nature of the audit and promised a more detailed update in November and a finalized audit presentation after the auditors visit in January.
Ending: Staff left trustees with two near‑term tasks: continue monitoring state budget negotiations that could affect 2025–26 revenue and return with finalized audit numbers after the auditors’ January visit.
