Harrisburg City SD auditors deliver clean opinion; board is asked to move $10.7 million to reserves and insurance fund

Carl Hogan, an auditor with WIFRIM (formerly EDD), told the Harrisburg City School District board on Feb. 11 that the district’s 2023–24 financial statements received a clean audit opinion.

Hogan said the audit shows general fund operations finished the year stronger than budgeted and that the district is taking steps to shore up controls. "The audit report is a clean audit report," Hogan told the board. He added the auditors found no deficiencies rising to the level of a significant deficiency or material weakness.

District business staff used the audit presentation as the basis for a set of recommended year‑end transfers that would move $6,700,000 to the capital reserve fund, $2,000,000 to an internal service (self‑insurance) fund and $2,000,000 to an enrollment stabilization assignment. Those transfers were presented as a business‑office recommendation and were moved to the district’s Feb. 25 agenda for formal approval.

The auditors also noted federal grant activity triggered single‑audit requirements: the district receives more than the $750,000 single‑audit threshold in federal funds in some years. Hogan said the audit team performed the single‑audit procedures required and reported no compliance exceptions for the programs examined.

Business staff reported a treasurer’s bank balance of $60,440,273.97 (December reporting) and described the proposed transfers as a way to keep the district’s unassigned fund balance within its policy target and to pre‑fund capital needs and volatile insurance claims. The transfers presented by business staff differ slightly in wording from the auditor’s presentation (the auditor described nearly $9 million moving to capital projects in historical context); staff presented a precise recommendation to move $6.7 million to capital reserve, $2.0 million to internal service and $2.0 million for enrollment stabilization.

Board members thanked the finance staff and auditor for the work but did not vote on the transfers at the Feb. 11 meeting; the items were placed on the Feb. 25 consent agenda for final action.

Why it matters: A clean audit and the proposed transfers affect the district’s ability to fund capital work without borrowing, to hold reserves for insurance volatility and to manage enrollment‑driven revenue swings. The business office emphasized that with stronger year‑end results the district may not need to borrow for many smaller capital projects.

Notable figures and clarifications: the audit covers fiscal year ended June 30, 2024; the business office recommended transfers totaling $10,700,000 (capital reserve $6,700,000; internal service $2,000,000; enrollment stabilization $2,000,000); the treasurer's reported bank balance (December) was $60,440,273.97.

Ending: The board will consider formal acceptance of the audited financial statements and the recommended transfers at its Feb. 25 meeting.