Auditors report clean opinion; school board approves $705,478 transfer to capital fund

Bridal DePaulo of Larson, Keller and Associates told the Montoursville Area School District board the firm issued an unmodified opinion on the district's financial statements for the year ended June 30, 2025, and an unmodified opinion on the federal programs the auditors tested. "Based on the audit test work that we did, we believe that your numbers are fairly stated," DePaulo said, and added the audit produced no findings or difficulties with management.

DePaulo highlighted two technical areas that underlie the financial statements: pension and post-retirement liability estimates and the single-audit testing of federal programs. The auditors reviewed federal expenditures totaling about $1,607,000 for the fiscal year and tested the district's food-service program for compliance; the audit report contained no findings on those matters.

Following the presentation, the board unanimously acknowledged the district's audited financial statements and accepted the audit report from Larson, Keller and Associates.

On the consent agenda, trustees approved a transfer of $705,478 from the general fund to the capital fund, representing excess revenues over expenditures for fiscal year 2024'025. Board members said the transfer will help replenish capital expenditures used for current projects and provide funding flexibility for upcoming field and infrastructure work. "Those two combinations of things allowed us to have an excess," one trustee said during discussion.

The board also approved an agreement to secure GASB 75 valuation services for retiree liability reporting; staff explained the service performs the actuarial valuation required under accounting standards.

Next steps: the audit is on file with the district and routinely used for financial reporting; the capital transfer will be reflected in next month's accounting entries and in the district's capital project tracking.