Audit finds no material weaknesses; BASD posts $4.5 million surplus

Gorman and Associates told the Bethlehem Area School District Board that the district's audited financial statements for the year ended June 30, 2024, show no significant deficiencies or material weaknesses and a fund balance of $72,351,866.

Hank Miller, a partner at Gorman and Associates, reported the results during the board's combined committee meeting. "Based on our audit procedures we believe the financial statements are presented fairly to you the board and to the public," Miller said. He also noted the district ended the year with a surplus of nearly $4,500,000 and that the food service fund has reported roughly $1.8 million in operating profits in recent years.

The auditors provided two documents to the board: a management letter outlining findings and recommendations and a bound single-audit report. Miller explained the management letter documents any findings and recommendations generated during the audit and that management's discussion and analysis (MD&A) is prepared by district staff, not audited, but reviewed for consistency with the statements.

The single-audit portion covered federal-award compliance because the district spent more than $750,000 in federal awards. The auditors reviewed the Child Nutrition cluster, including the National School Lunch Program and School Breakfast Program, against the U.S. Office of Management and Budget (OMB) uniform guidance. Miller said the single audit identified no federal compliance findings for the period under review.

Board members thanked district business-office staff and auditors for the work. The board did not take a formal vote on the audit at the combined committee meeting; the audit appears on the consent/agenda list for the upcoming January 27 meeting for routine approval.

Details reported by the auditors are in the management letter and the single-audit report provided to the board.