Schuylkill Valley board accepts clean audit, hears preliminary 2026-27 budget showing small deficit and approves new director

The Schuylkill Valley School Board on Oct. 27 accepted the district’s annual audit, heard a preliminary budget that shows a modest projected deficit for 2026-27, and unanimously approved a personnel appointment.

Nick Bieber, senior manager at Herbine and Company, told the board the auditors issued an unmodified opinion under generally accepted auditing standards — "This is a clean opinion from an independent auditor" — while noting the federal Uniform Guidance testing for federal programs could not be completed because the U.S. government had not issued the final compliance supplement. Bieber said the change had no effect on the auditor’s ability to issue the financial statements pending later completion of that testing.

The audit presentation showed the district’s general fund revenues were about $493,000 over budget for the 2024-25 fiscal year while expenditures ran roughly $2,265,000 over budget, producing a net decrease in fund balance of $1,752,000 to a year‑end general fund balance of $2,667,000. The auditors also reported a $103,000 restatement tied to a new accounting principle for compensated absences. Bieber recommended the board consider a formal minimum fund-balance policy tied to the auditor’s review — the presentation noted unassigned fund balance of $2,500,000, equal to about 5.1% of budgeted expenditures for the next year.

Kristen, the district’s budget presenter, delivered the preliminary 2026-27 budget and said the district currently projects roughly $50.8 million in revenue and $51.0 million in expenditures, "Therefore, currently, we are showing a deficit position of about $200,000." She identified charter-school tuition and special‑education contracted services (including out‑of‑district placements and speech therapy) as the primary drivers of increased costs and said about 70% of the district’s budget is committed to salaries and benefits.

Kristen reviewed the district’s revenue assumptions: no tax increase (current millage 27.82), an assumed 1.5% growth in assessed values for the 2026-27 projection, and a 98% collection rate on current real estate taxes. She also said the district has budgeted conservatively given an ongoing state budget impasse that, she said, has left Pennsylvania school districts waiting on roughly $5.3 billion in delayed payments statewide.

Board members pressed for more detail on the $1.47 million overrun in special programs and the composition of the wage underrun (about $713,000), which the group said largely reflects unfilled positions; several members cautioned that those underspends should not be counted as sustainable savings if the vacant posts are later filled. The auditor and staff said they will provide more detailed variance analyses and that the district will continue refining the preliminary figures before an early‑year balanced budget is adopted.

The board also approved a personnel action to fill a vacancy created by the resignation of Dr. Melissa Brewer. The motion approved annual salary terms for Matthew Ammons as director of pupil services at $143,500 (prorated for actual days worked); the appointment passed 9-0.

Votes at a glance • Appointment of Matthew Ammons, director of pupil services (annual salary $143,500, prorated) — motion made and seconded; outcome: approved, 9-0. • Acceptance of annual audit report as performed by Herbine and Company for the fiscal year ending 06/30/2025 — motion made and seconded; outcome: approved, 9-0. • Motion to adjourn — approved by voice vote.

What’s next Staff will produce more detailed variance analyses and proposed budget adjustments between now and early next year as the district works toward a balanced 2026-27 budget. The audit’s Uniform Guidance testing remains outstanding pending federal action; staff said the financial statements can be finalized for local reporting but federal clearinghouse submission will await completion of that work.

(Reporting includes material presented at the Oct. 27, 2025 Schuylkill Valley School Board meeting, including an audit presentation by Nick Bieber of Herbine and Company and the budget presentation by Kristen.)