Auditor Dan Bradley presented the independent audit of the Mifflin County School District for the year ended June 30, 2025, and said the firm issued an "unmodified or clean opinion" on the district's financial statements. The audit shows a deficit on the statement of net position driven largely by long-term pension and other post-employment benefit (OPEB) liabilities, which Bradley estimated at about $84,000,000 combined for governmental and business-type activities.

Bradley told the board the governmental activities column shows a deficit of $3,986,000 but the general fund — the primary operating fund — had a positive fund balance of $28,895,000 and the governmental funds total was positive $36,597. He highlighted that, under full-accrual accounting, those long-term liabilities create an apparent deficit that is driven by accounting recognition rules rather than an immediate cash shortfall. "At first blush, it may look like, boy, we're in financial difficulties," Bradley said. "But actually, those two liabilities are very long term type liabilities." He also reported an improvement in net position for governmental activities of $17,808,502 for the year.

The auditor called attention to the budget-to-actual comparison: the district had budgeted a negative result of $5,660,280 but recorded a favorable variance of about $7,473,000 after actual results, and the food-service (business-type) operations posted a modest increase in net position of roughly $60,517. The audit's schedule of federal-award expenditures showed federal spending of $99,871,000; the auditors tested 56% of that amount (the required threshold is 20%).

Bradley also reported the audit's internal-control and compliance testing found no reportable internal-control weaknesses or compliance issues. "That's a real tribute to the folks you have leading the school district," he said, thanking district administrators by name for cooperation during the audit.

Why it matters: The audit affirms the district's financial statements are presented fairly under accounting standards while flagging long-term pension and OPEB obligations that will continue to affect accrual-basis metrics. The board can use the audit to inform long-term financial planning and to explain to the public why accrual deficits do not necessarily indicate immediate liquidity problems.

Next steps: The auditor invited questions at the meeting and staff said they will provide hardbound copies of the report to board members next week.