Auditor presents preliminary 06/30/2025 results; district fiscal position stronger than budgeted

Carl Hogan, the independent auditor for Harrisburg City School District, presented preliminary audit results for the year ended June 30, 2025, telling the board the financial statements were fairly presented and that his team found no material weaknesses or significant deficiencies that must be reported at this public meeting. "We're going to receive a clean or a modified financial statement opinion," Hogan said, while noting final federal compliance procedures remain before the audit is finalized.

Hogan walked the board through the audit scope and approach, describing a risk-based audit that confirmed roughly 90% of district revenue through third-party confirmations. He said the district’s total revenues for the year were about $6.1 million higher than the $215,000,000 budget and expenditures were approximately $9,000,000 below the $213,000,000 budget, producing a net change in fund balance of about $2.5 million. The district’s total fund balance stood at about $28,400,000 as of June 30, 2025.

Hogan highlighted changes required by recent Governmental Accounting Standards Board guidance, including GASB 101, which alters how compensated absences are estimated by requiring assumptions about future leave use rather than only amounts vested or payable at year-end. "It requires a little bit different level of estimates and assumptions," Hogan told the board when asked by Miss Anderson how the new standard increases the liability.

The auditor described components of the fund balance and noted the district has been able to transfer funds into a capital reserve for future projects. After transfers the district expects about $47,800,000 in the capital reserve fund for future capital projects. Hogan also reviewed the debt service fund and noted older qualified school construction bonds issued in 2007–2008 will draw down over the next two years. He reported the food-service fund showed a positive change in net position of $841,000 and said prior COVID and state initiatives helped stabilize the fund.

Hogan said the audit still requires completion of single-audit procedures tied to federal programs (Title I and Title IV) and a second internal review before issuance. He outlined the final steps: complete federal compliance testing, obtain the signed representation letter from management, submit through the federal audit clearinghouse, and deliver the final report to the state and bondholders.

Board members thanked Hogan for the update and requested a copy of the presentation. The board will consider the final audit financial statements at the committee-of-the-whole meeting on Feb. 10 as administration completes the remaining federal compliance work.