Harrison County Schools reviews year-end financials, board moves to submit statement to state

Finance staff presented Harrison County Schools’ year-end financial statement at a board meeting and moved to submit the report to the West Virginia Department of Education for the state deadline.

The finance presenter said the district closed the year with a general-fund surplus of $19,616 and a total fund balance of $28,175,000. The presenter said the district has an unrestricted fund balance and reported that unrestricted reserves represent about 17% of annual expenditures; staff estimated current reserves would cover roughly two months of operations at present spending levels.

The presenter told the board that $1,206,000 remained in the excess levy fund and is earmarked for personnel costs in 2026, and that the permanent improvement fund had a surplus of $5,299,587 dedicated to capital improvements. The presenter said a portion of the permanent improvement fund—"about 500,000, no more than 700,000"—will be used for Liberty renovation projects. The presenter said funds placed in the permanent improvement account come from general‑fund surpluses, gross proceeds from real‑estate sales and interest income and are restricted to capital projects.

On inventories and prior‑period adjustments, staff reported a prior‑period adjustment estimated at $882,000 and inventories totaling about $1,100,000. The presenter said a physical inventory was taken by departments and cited transportation inventory of $579,857 for FY25, custodial $161,017, maintenance $117,725 and five years’ worth of math workbooks purchased in advance at $119,500; food services inventory was $165,553.

Staff described a reduction in revenue tied to COVID relief funds carried in prior years and said those prior revenues had previously covered personnel costs; the presenter did not provide a definitive single‑line figure for how much ongoing personnel costs must now be absorbed by general and excess levy funds.

On accounting and liabilities, the presenter said a new Governmental Accounting Standards Board guidance required reporting of a sick‑leave liability (referred to in the discussion as "GASB 101"). The presenter said the compensated‑absences prior‑period adjustment for sick leave was $5,384,621, that the estimated ending liability as of June 30, 2025, was $6,223,868 and that the reported vacation liability was $132,597. The presenter described that liability as "a huge liability to hit our financial statements." The presenter also noted that some sick‑leave accumulations established after July 1, 2015, cannot be used for post‑retirement benefits and thus must be reported.

Staff gave an update on capital projects and construction in progress. For fiscal 2024 the presenter said 12 projects were in process at year end, nine were finished during the year and three remained unfinished as of June 30, 2025: the South Harrison Middle and High School HVAC project, the Matterport classroom additions and the Simpson classroom additions. For fiscal 2025 the presenter said nine additional projects were started, two completed, and that ten projects remained in progress at year end (the three from 2024 plus seven new projects). The presenter pointed the board to a project listing in the financial report (page 35) for details.

Board members asked follow‑up questions about sick leave, how legislative changes had affected personnel costs, the measurement date for construction status (staff confirmed June 30, 2025), utility costs for closed buildings and whether energy‑saving projects had produced measurable reductions in consumption; staff said energy savings were difficult to quantify because consumption and energy prices vary and cited LED lighting and HVAC upgrades as outcomes. The presenter also discussed debt and lease obligations tied to energy projects with payments scheduled through 2034 and noted the district has paid off one such obligation and expects another payoff in 2029.

A board member moved to approve submission of the financial statement to the West Virginia Department of Education; the motion and any second were recorded in the meeting but a roll‑call vote and final tally were not specified in the transcript. The meeting closed after a separate motion to adjourn.