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Lower Moreland audit shows clean opinion as district reports reduced fund balance and no single-audit findings
Summary
Auditors from Malley LLP told the school board the district will receive a clean (unmodified) opinion on the 2024–25 financial statements and that the single-audit of federal programs (IDEA) had no findings; presenters noted a fall in cash and general fund balance tied to capital spending and accounting changes under GASB guidance.
Auditors presented a clean, unmodified opinion on the Lower Moreland Township School District’s 2024–25 financial statements and said the district’s single audit of federally funded programs (the IDEA major program) produced no findings.
"So for audit, we are issuing an opinion on the financial statement. And the opinion we're issuing is a clean or unmodified audit opinion," said Greg Shank, partner in charge of the audit for Malley LLP. He told the board the audit process produced no 115-type communications of deficiencies and required no significant adjustments to the books.
Shank walked the board through summary figures in the government-wide statements and the governmental fund presentations. He said cash declined from about $18,500,000 to $12,400,000, driven in part by roughly $3,000,000 of planned capital expenditures and another roughly $3,000,000 reduction in general fund balance tied to a combination of expenditures and debt service. He also said long-term debt dropped from about $86,100,000 to $82,300,000 primarily because of principal payments.
The auditors flagged an increase in recorded liabilities tied to implementation of a new accounting pronouncement for compensated absences (GASB Statement 101). "As a result of that, the liabilities increased," Shank said, explaining that the district restated beginning net position to reflect accrual of additional compensated-absence liabilities required by the new guidance.
Board members asked follow-up questions about the pension liability, capital-asset changes and the compensated-absences restatement. Shank attributed pension movements to a combination of actuarial factors and return-on-investment effects and said such shifts are common across governments adopting the GASB pronouncements.
The board moved and approved the draft 2024–25 audit report as prepared by Malley LLP in a voice vote during the meeting.
What happens next: presenters said the auditors will finalize the report after management representation letters are delivered; the board approved the draft audit report and the district will post the final audit when complete.
