Fox Chapel Area SD accepts unmodified audit, approves finance items and budget transfers

The Fox Chapel Area School District board on Jan. 12 accepted an unmodified audit opinion for the fiscal year ended June 30, 2025, and approved seven bundled finance items including general-fund disbursements, capital-fund disbursements, budget transfers and a resolution regarding the 2026-27 tax rate.

At the meeting, the district's independent auditor summarized the financial statements and related notes, reporting total general-fund revenues of about $118 million and expenditures of about $114 million, yielding a $2.6 million net increase in fund balance. The auditor said the district's committed fund balance included roughly $6.82 million set aside for retirement-related increases and small ARCH grant reserves; assigned balances included about $14 million for future capital improvements; and the unassigned fund balance was about $10.76 million, roughly 9% of budgeted expenditures—within Government Finance Officers Association guidelines.

The auditor also reported a capital projects fund balance of about $9.3 million, noted nearly all recent capital spending related to HVAC work at Hartwood, and disclosed total outstanding general-obligation bonds of $53.7 million. The district's share of net pension liability on government-wide statements was presented at about $133 million and was down from the prior year, and other post-employment benefit (OPEB) liabilities were discussed in the footnotes. The auditor said federal program expenditures totaled about $2.9 million for the year and that the child-nutrition cluster tested as a major program (about $963,000) showed no material weaknesses in internal control or noncompliance.

Board members asked follow-up questions about the decline in reported OPEB liability and flattening of real-estate revenue. The auditor attributed the OPEB change in part to actuarial assumption changes (a higher discount rate lowers liabilities) and said assessment adjustments and refunds can affect current-year real-estate revenues; the auditor offered to provide additional detail on specific transfers and line items.

Following the presentation, the board voted by roll call to approve items 1 through 7 as moved: disbursements for November and December 2025 (general fund and capital reserve fund), acknowledgment of the finance report for audit, approval of budget transfers for 2025-26, acceptance of the 2024-25 audit report, and adoption of a resolution electing not to increase the tax rate above the Act 1 index for the 2026-27 general fund operating budget. The roll call recorded unanimous 'Yes' votes and the motion carried.

The auditor noted a forthcoming change to the single-audit threshold and that the district will likely remain subject to single-audit requirements because of the size of its child-nutrition program. The district's audit report is available on the district website, per board materials.

The board ended the item by thanking the auditors and noting the district's new business manager would be engaged in future financial work.