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Auditor issues clean opinion; district shows modest operating surplus and capital reserves
Summary
Auditors issued an unmodified opinion for the fiscal year ended June 30, 2025, and the district reported an operating surplus of about $589,000 and capital projects fund balance of approximately $18.1 million; a GASB change increased compensated-absence liabilities by about $5.7 million but did not affect cash flow.
Auditors from Barbara King Thornton told the Haverford Township School District board on Dec. 4 that they are issuing an unmodified (clean) opinion on the district’s financial statements for the year ended June 30, 2025, and on compliance with major federal programs (the single audit).
The auditors said they identified no material weaknesses, significant deficiencies or other reportable matters. They called attention to a Governmental Accounting Standards Board measurement change that requires districts to estimate how much accrued but unused sick and vacation time employees will use while still employed; for this district the change raised entity‑wide compensated‑absence liabilities by roughly $5.7 million. Auditors emphasized this is a measurement change that does not affect cash flow or the budgetary basis.
Audit highlights presented to the board included a capital projects fund balance of about $18.1 million (proceeds from a $25 million bond issuance recorded during the year) and a general fund balance of approximately $17.0 million, of which an estimated $7–8 million is restricted for budgetary and capital purposes. The auditor described an operating surplus of about $589,000 for the year, which allowed planned transfers to capital of $2.0 million plus an additional ~ $500,000 transfer, yielding a net decrease in general fund balance roughly $1.7 million versus budgeted projections.
District finance staff then presented preliminary planning for the 2026–27 budget. Staff noted an Act 1 index of 3.5% and modest state basic education subsidy increases (about $134,000 more than the prior projection), offset in part by a roughly $65,000 decrease in special-education subsidy tied to student-count adjustments. The district is currently modeling commitments of $1,000,000 to capital and potential use of up to about $4,000,000 in unreserved fund balance to address forecasted shortfalls. PFM consultants also briefed the board on long-term scenario planning options to integrate operations, capital and potential savings such as those from the district’s planned solar projects.
Next steps: the board is scheduled to accept the audit at its Dec. 18 action meeting; a proposed budget presentation is planned for March 5 and a final-adoption timeline is being worked toward in May.
