North Allegheny audit returns clean opinion; board briefed on planned $10 million bond timeline

Auditors told the North Allegheny School District board on Jan. 7 that the district’s financial statements for the year ended June 30, 2025, received an unmodified (clean) opinion and required no material audit adjustments. Mr. McCall of Ardusol said the audit also included single‑audit testing of federal programs (exceeding $750,000) and found no internal‑control findings.

The clean opinion means the audit firm found the district’s financial statements free of material misstatement. McCall highlighted that the district ended the year with a fund balance at 7.9% (below Pennsylvania’s 8% cap) and a general‑fund balance of about 15% of expenditures. “No material audit adjustments is part of our audit process,” McCall said, adding the district earned a Certificate of Financial Reporting Achievement.

Board members thanked the finance team for cooperation and noted the audited financial statements are posted online for public review.

After the audit presentation, district bond counsel Anthony Ditka of Dinsmore explained a three-step process the district will follow if it moves forward with tax-exempt borrowing tied to upcoming construction. Ditka said a reimbursement resolution is on tonight’s agenda and “does not commit you to a project” but preserves the district’s ability to reimburse prior expenditures from a future tax‑exempt issuance. In February the board would consider an appointment resolution to authorize the district’s financing team (traditionally PNC Capital Markets), and in March the board would receive a full bond resolution and related documents. Ditka said the district’s plan is “roughly a $10,000,000 issuance” in the spring, phased so each issue meets IRS spending windows and small‑issuer tax benefits that tend to lower borrowing rates.

The reimbursement resolution is administrative under the tax code and looks back 60 days while looking forward 18 months, Ditka said; it therefore protects the district’s ability to recoup eligible costs if it later issues tax‑exempt debt. No vote on borrowing occurred at the Jan. 7 meeting; Ditka said he will return in February and March with the appointment and bond resolutions.

What’s next: the board will see the reimbursement resolution tonight and may vote on related appointment and bond documents in February and March, with proceeds expected as soon as April or May if the timeline is followed.

Sources: remarks by Mr. McCall (auditor) and Anthony Ditka (bond counsel) during the Jan. 7 North Allegheny School District board meeting; publicly posted audited financial statements.