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Auditors issue unmodified opinion for Kiski Area SD; report flags large long-term liabilities and tightening federal funds
Summary
External auditors told the school board they issued an unmodified opinion on the district's 2023-24 financial statements, noted roughly $50 million in long-term bonds and substantial pension and OPEB liabilities, and warned that certain federal relief funding is nearly exhausted.
Bob Velikos, who identified himself as a former principal and presented the district's audit findings, said the auditors issued an unmodified opinion on Kiski Area School District's fiscal 2023-24 financial statements, the highest level of assurance the firm can give that the statements are materially accurate.
The presenter told the board the audit followed generally accepted government auditing standards and uniform guidance for single audits. He said the district qualified for a single audit because federal expenditures exceeded $750,000 and that the district spent about $5.7 million in federal funds during the year.
The auditor outlined several key figures: long-term bonds payable of about $50,000,000, short-term debt of roughly $2,800,000 due within the fiscal year, a net pension liability of about $76,000,000 (a $130,000 decrease from the prior year) and a net OPEB liability of about $12,600,000. Total fund balance was reported at approximately $20,000,000, with roughly $6,100,000 in the general fund and $13,800,000 in capital projects funds that are restricted for bond spending.
Velikos said the district recorded a loss of approximately $1.3 million for fiscal 2024, driven in part by costs above budget, and that after adjusting for pension and OPEB liabilities the district's unrestricted position would be about $6,000,000. He noted the district's unassigned general fund balance equals about 4.6% of expenditures and contrasted that with internal guidance (8%) and a Government Finance Officers Association benchmark (about 16.7% for two months of reserves).
The presenter also cautioned the board that a category of federal funding the district had used (SR funds) has declined: he reported SR expenditures were about $1.8 million with only about $440,000 remaining and said that funding stream is "drying up," urging the board to plan for how to cover costs previously supported by those funds.
The audit report contained no material adjustments and the auditors reported no findings, significant deficiencies or material weaknesses for the programs they tested. The presenter closed by inviting questions; none were recorded and the board thanked him for the work.
The board did not take any formal action on the audit at the meeting; the presentation concluded with the auditor's summary and the district noting the results for the public record.
