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Derry Area SD auditor issues unmodified opinion; GASB 87 lease accounting added
Summary
External auditors told the Derry Area School District board the 2023–24 financial statements received an unmodified opinion, highlighted a net government‑wide deficit and noted new GASB 87 right‑of‑use lease entries; the single audit of federal programs also received an unmodified opinion with no control deficiencies.
The Derry Area School District Board of School Directors heard an audit presentation showing an unmodified opinion on the district’s 2023–24 financial statements, auditor George Josephovich of Zelenskowsk, Axelrod LLC said during the board meeting.
Josephovich told the board that government‑wide assets and deferred outflows totaled $62,700,000, liabilities were about $67,500,000 and deferred inflows were $8,100,000, which the auditor said produced a government‑wide net deficit of approximately $12,900,000. He said the district’s general fund assets were $19,300,000, liabilities $4,500,000, deferred inflows $1,900,000 and a general fund balance of $12,800,000.
The auditor said revenues exceeded expenditures on the statement of activities, increasing net position by $6,600,000 for the year. Josephovich also described an accounting change under GASB 87 that required recognition of “right‑to‑use” assets and related lease liabilities; the audit shows a right‑to‑use asset of $834,000 and an operating lease liability of $578,000 and a restatement that reduced beginning net position by about $108,000 (see note 14 of the audited statements), the auditor said.
On the single audit, Josephovich said the district’s total federal expenditures were about $4,500,000 for the year and that the Education Stabilization Fund (ESSER) program was selected as a major program for testing. He reported no internal control deficiencies for financial reporting or compliance and said auditors issued unmodified opinions on the major federal programs and the schedule of expenditures of federal awards.
Board members thanked Josephovich and the audit team; no motions or votes on the audit itself were recorded in the meeting transcript. The auditor left contact information for follow‑up questions noted in the audit outline provided to the board.
