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Interim CFO details grant, payroll and audit cleanups; board warned budget transfers coming
Summary
Interim CFO provided a finance update saying the district must reconcile multiple multi‑year grants, fix payroll workflows, prepare audit workpapers and carry out budget transfers for 2025–26 before starting the 2026–27 budget process; board members discussed issuing an RFP for auditors.
Mr. Lentz, the district’s interim chief financial officer, told the Boyertown Area School District finance committee on an evening meeting that staff are closing out grants that stretch back to 2023–24 and preparing files for the current audit and budget reconciliations.
“The goal … is to improve the operation of the audit, wrap up items that are outstanding from 2023 to 2024, 2024 to 2025,” Lentz said, describing work to finish grant reports, reconcile account balances and prepare Skyward (the district’s financial system) for the current year.
The update matters because the district’s approved 2025–26 budget needs coding corrections before the committee can provide monthly, department‑level expenditure reports. Lentz said those corrections will likely require formal budget transfers that cannot begin until 90 days after the fiscal year start (October 1). He emphasized transfers would not change the overall budget total but would move budgeted amounts into the correct account codes so department leaders can see and manage their actual spending.
Lentz also described payroll issues the finance office is working to fix. He said multiple monthly payroll runs, recent staffing turnover and manual edits to the direct‑deposit file have reduced time available for reconciliations and reporting. He said the district submitted a help request to Skyward to remove manual corrections and that a Skyward‑proficient contractor is assisting the payroll employee. "There's really no reason ... why we need 4 payrolls," Lentz said, recommending a possible transition to fewer payroll runs to reduce workload and allow reconciliations.
On audits, Lentz said the finance team has begun reconciling accounts and comparing current workpapers to prior years to support the external audit. He also reminded the board that the district received notice it will be monitored by the Pennsylvania Commission on Crime and Delinquency for a 2023–24 school safety grant. Board members asked about the timing and thoroughness of audits; Mr. Owens and others pressed whether past tax penalties and late payments should have been identified earlier. Lentz said audits examine risk and payroll and that notices from tax authorities can reveal late payments; he described the effect of late payments as a “domino effect” that can make later payments appear late.
Several board members raised the idea of soliciting new audit proposals. Lentz and staff said an RFP could be released in mid‑winter to avoid peak tax season when audit firms are busiest; they suggested a possible award in March or April. The staff also noted an industry shortage of audit CPAs and proposed options including requesting a partner rotation if the board retains the current firm.
Looking ahead, Lentz outlined a timeline for the 2026–27 budget process: staff will work with principals and department leaders in the fall on a zero‑based budgeting approach, aim to provide preliminary budget estimates in December, seek a board resolution on whether to exceed the Act 1 index by Jan. 20, and present a proposed final budget for public review in April with adoption targeted in June. Lentz said the Act 1 index for 2026–27 is 3.5 and the district’s adjusted rate will be published later in the month.
No formal motions on transfers or auditor selection were taken at the finance committee; Lentz said the October meeting would include specific transfers for board action.
