Unaudited 2024–25 results: Avon Grove fund balances drop ~$7.4M; audit timing tied to federal single‑audit guidance

Mr. Carsley presented a preliminary, unaudited look at Avon Grove School District’s 2024–25 financial results during the Committee of the Whole budget portion of the Oct. 14 meeting, stressing the numbers are subject to change pending federal single‑audit guidance.

The most significant summary figures presented:

- General fund: beginning fund balance ~$31.0 million; estimated ending fund balance ~$28.4 million. The year used an estimated $2.6 million of fund balance on the unaudited numbers; the district’s approved budget had anticipated a larger use of fund balance (about $5.8 million) where roughly $1.2 million is designated as a budgetary reserve.

- Revenues/expenditures: total general‑fund revenues were reported at approximately $111.0 million (around $2.0 million below estimate) and expenditures around $113.6 million.

- Capital projects fund: ending fund balance was roughly $4.2 million after using about $3.8 million of that fund’s balance; administrators noted capital‑project budgets are sensitive to transfers from the general fund and timing of project payments.

- Internal service fund (healthcare): costs were higher than budgeted; ending fund balance presented at about $4.6 million.

- Combined fund balance: total reported fund balances declined from about $44.7 million to $37.3 million — a reduction of approximately $7.4 million for the year.

Audit timing and federal single audit

Mr. Carsley explained the audit remains incomplete because federal single‑audit guidance for certain federal program testing had not been issued; the guidance’s timing has been affected by a federal shutdown. He said the auditors may present final items once federal guidance arrives and that the unaudited figures could change when the audit is completed.

Other items discussed

- Revenue recognition: Mr. Carsley noted some state retirement and social‑security reimbursements were not recognized because they were not measurable and available within 60 days of the period end; if received later they will be recognized in the next audit cycle.

- Interest earnings: investments are held in the school district liquid‑asset pool; board members were told interest earnings were about $1.1 million higher than budget for 2024–25 and the district’s pooled rate was reported near 4% at the time of discussion.

- Capital repairs and contingencies: board members asked how one‑time capital repairs (the example discussed was an “angle roof” repair of about $2.2 million) are handled. Mr. Carsley said large repairs are charged to the appropriate fund (general or capital) depending on accounting and funding decisions and that the district had moved surplus general‑fund dollars into capital projects in prior discussions.

What the board requested and next steps

Board members asked for materials in advance to allow review before presentations in future meetings. Auditors have been on site and a November update was discussed, but Mr. Carsley reiterated final audit timing depends on federal guidance for single‑audit testing.

No formal budget votes or changes were taken at the meeting; the presentation was informational and described as unaudited.