Oley Valley board hears clean audit; auditors flag new GASB rules and $1.26 million Apple finance purchase

Megan Thompson, partner on the engagement for Cherry B eckert, told the Oley Valley School District Board on Dec. 8 that the firm issued an unmodified audit opinion on the district’s 2024–25 financial statements.

"It is an unmodified opinion. That's a clean audit opinion," Thompson said, adding that the district produced statements that the auditors could rely on for a fair presentation of its finances. Roxanne McMurtry, the senior manager on the audit, walked the board through a landscape document that summarized key matters and disclosures.

The auditors said a new Governmental Accounting Standards Board standard on compensated absences changed how leave liabilities are measured and resulted in restatements to opening net position and fund balances. Thompson and McMurtry emphasized that the change reflects accounting measurement, not new cash obligations.

The presentation also explained a finance purchase for technology with Apple that must be shown as both a financing inflow and an expenditure on the district’s statements. McMurtry said the district recognized approximately $1,259,000 related to the Apple financing (the audit presentation shows the finance proceeds and the grossed-up expenditure), which contributes to the appearance of expenditures being over budget in the current-year comparison.

On budget variances, the auditors flagged that the general fund posted a smaller-than-budgeted decrease in fund balance (budgeted decline ≈ $675,000; actual decline ≈ $232,000) driven by higher-than-expected local revenues (about $376,000, including roughly $121,000 from delinquent real-estate taxes and about $188,000 in interest income) and some expenditure savings. Federal revenues were below budget (about $136,000 under), largely from Title I and medical-assistance reimbursement timing.

The auditors also reviewed proprietary fund presentation changes under a new GASB reporting model that will alter how food-service subsidies are shown so operating results will no longer display as large operating losses with subsidies below the line. McMurtry said the change will make the food-service presentation look "a little more normal." The food-service fund had a reported adjusted increase in net position this year (about $112,000), the auditors said; part of the improvement followed a 25¢ per-meal price increase.

Thompson noted that Herbein was acquired by Cherry B eckert in October and that staff familiar to the district will continue to work on the engagement. The auditors said the single-audit component that tests federal grants is pending receipt of the Office of Management and Budget compliance supplement and should appear in a January–February update ahead of the March filing deadline.

The board asked the auditors about other revenue ideas and whether Cherry B eckert would continue the firm’s government audit practice; auditors said they expect continuity of service and that the firm has an active government practice.