External auditors report unmodified opinions, note procedural deficiencies and fund balances

Auditors from Boyer & Ritter told the Gettysburg Area School District board that their work is nearly complete and that they anticipate issuing unmodified opinions for the district’s financial statements and for major‑program compliance, with some control‑deficiency findings requiring management attention.

Why it matters: An unmodified opinion is the cleanest audit opinion and supports the district’s financial reporting to state and federal funders and bondholders. The auditors also flagged administrative weaknesses that the board and business office will need to address.

What auditors told the board Tina Gipe, the engagement manager from Boyer & Ritter, said the firm is near the end of its audit procedures and expects to issue the final audit package at a future board meeting. She noted the Pennsylvania Department of Education requires an independent annual audit and that the federal single‑audit rules apply when districts expend more than $750,000 in federal awards; Gettysburg reported approximately $7,500,000 in federal expenditures for the year and about $4,500,000 in ESSER expenditures tested as a major program.

The auditors described three reports in their package: an independent auditor’s report on the financial statements, an auditor’s report on internal control and compliance, and a report on compliance for the major federal program. They said they expect to provide unmodified opinions on the financial statements and on compliance for the major program. The auditors also reported identified deficiencies in internal control during testing: (1) late or missing filing of certain quarterly reports and (2) missing time‑certification records. Belinda, the district business office representative, told the board that the funds in question had been received and deposited and that the reporting will be reflected in current‑month revenue.

Financial highlights presented - General fund: revenues and expenditures both increased over the prior year; taxes were discussed as a large component of total revenue. Auditors said total revenues exceeded budget by about $8.3 million, largely because ESSER revenue had not been budgeted in the prior year. Net revenues and expenses produced an increase in general fund balance of just over $1.9 million for the year. - Fund balances: auditors reported a general fund total fund balance of about $26.2 million, with an unassigned portion of roughly $6.3 million and other portions restricted, committed or assigned for specific uses. - Capital funds: the capital projects reserve fund ending balance was reported at approximately $9.7 million; the capital projects bond fund showed related expenditures (HVAC and roof work) and an ending fund balance of roughly $20.5 million. - Debt and government‑wide numbers: the district’s general obligation debt was reported at about $65 million; pension and OPEB liabilities are actuarially determined and noted as changing annually.

Next steps and communications The auditors said management had posted all proposed adjustments identified during the audit, that there were no disagreements with management, and that no material misstatements remained uncorrected. The district will receive a management recommendations letter (including upcoming GASB changes) and a required communications letter. The final audit package, opinions and any formal recommendations will be posted when the audit is complete.

Sources: presentation to the Gettysburg Area School District Board by Tina Gipe of Boyer & Ritter and comments from the district business office.