Auditor reports two immaterial findings; district fund balance grows to about $7.2 million

An external auditor presented the Mount Olive Township School District—s 2024 financial audit at the Feb. 10 board meeting, saying the report included two immaterial comments but showed improved fund balances.

The audit presentation, delivered to the board by the auditor and followed by explanations from Business Administrator Nicole Schroning and Superintendent Dr. Bangea, said the district collected more in revenue and spent less than expected. "In short, we collected more than we thought we were, and in short, we spent less than we thought we were," the auditor said. He reported the district had roughly $7,200,000 in reserve after recent activity.

The audit included two comments the auditor described as immaterial. The first concerned differences between the district—s internal work papers and the figures reported on the Application for State School Aid (ASSA), the annual enrollment-and-program report submitted to the state. Schroning told the board the district will implement an on-the-record, real-time review before future ASSA submissions so those differences do not recur.

The second comment targeted the food service fund—s net cash resources. The auditor said that because of large federal and state grants distributed during the COVID era, some food-service accounts now hold more resources than the traditional self-liquidating fund structure anticipates. "It's not an issue in the sense of a problem," the auditor said. "It's just something I unfortunately have to make note of." He and district staff described ongoing plans to spend or allocate the surplus on allowable food-service expenses and capital items tied to cafeterias.

Why it matters: The auditor framed the positive fund balance as a financial cushion following a recent failed referendum. With reserves, the district can address urgent infrastructure needs such as roofs and HVAC without immediately returning to voters, the auditor said.

Board members asked whether the district and the auditor were preparing contingency plans in case federal funding were suddenly reduced. The auditor said his firm is monitoring state and federal guidance and will notify the district if substantive changes appear likely. Schroning said the district has identified food-service capital needs and will charge allowable salaries and utility allocations to the food-service fund where appropriate to reduce excess cash while staying in compliance with rules.

Board President and other board members thanked the auditor and Schroning for the report and said they would continue follow-up work with finance and operations committees.

The presentation concluded with the auditor noting the district faced turnover in the business office but that current staff have taken steps to strengthen internal review and controls.

The board received the audit and did not take separate, immediate action on the audit report during the meeting.