Auditors give Bethel Park School District a clean opinion; pension and cafeteria costs cited as continuing pressures

Cipher & Cipher presented the Bethel Park School District Board with the audit for the fiscal year ended June 30, 2025, reporting an unmodified (clean) opinion and urging continued attention to pension liabilities and the cafeteria fund.

Auditor Steve Seifer told the board the firm issued an unmodified opinion on the financial statements and performed a single audit because the district received more than the federal threshold for federal revenue. "The opinions that you see at the bottom of page two is unmodified," Seifer said, and auditors found "no instances of noncompliance and no significant deficiencies in the internal control reporting system." Luke Rail, who led much of the audit fieldwork, summarized items in the management letter and financial details.

The auditors reported fund-level results showing total revenues of roughly $108.2 million and expenditures of about $109.9 million, producing a net decrease in fund balance of about $2.06 million for the year. Seifer said the district's total general-fund balance at year-end was approximately $15.6 million, with an unassigned (unreserved/undesignated) balance of $6,000,191 — a figure he described as "an important number for the members of the board."

Auditors highlighted the capital projects fund activity and borrowing tied to large construction projects, noting roughly $3.7 million of revenue (mostly interest) and about $55 million in project spending funded in part by approximately $70.19 million of debt or other financing during the year. The debt-service fund held modest activity, with around $82,000 of revenue and $650 of expenses but had about $5.2 million earmarked for future debt payments.

At the government-wide level, Seifer explained that the district shows a negative unrestricted net position largely driven by its share of the statewide pension obligation. "We owe more out than we have to show for it," Seifer said, identifying roughly $116 million attributable to the district's share of the statewide retirement plan as the largest single contributor to the negative net position. He added that the five-year trend shows slight improvement but that pension-related liabilities remain significant.

The auditors also called out the cafeteria fund, which experienced its first net cash outflow since 2021: a loss before transfers of $128,000 and a net cash outflow of about $84,000. Rail recommended continued general-fund transfers to support the cafeteria fund as costs rise.

On GASB reporting, the management letter summarized GASB 75 (OPEB/retiree medical) obligations recorded at about $31.9 million and noted the five-year history of the GASB 68 net pension liability (a high near $137 million and about $116 million this year). Seifer characterized the plan funding status under common ERISA-style thresholds as worrisome (noting funding around the mid-60s percent) and said the employer cost — about 34 cents on every payroll dollar this year — contributes to long-term fiscal pressure.

Seifer and Rail closed by thanking district administration — including Dr. Walsh and finance staff — and invited directors to call with follow-up questions.

What happens next: auditors recommended the board monitor fund-balance policy, the cafeteria fund, and pension/OPEB funding trends. The presentation concluded with no substantive questions from board members during the time recorded in the transcript.