Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Audit topic
No spam. Unsubscribe anytime.
Northern Cambria auditor issues clean opinion, flags long-term pension and OPEB liabilities
Summary
An independent auditor told the Northern Cambria School District board that the FY2023-24 audit carried an unmodified opinion and that the general fund balance fell to $3.295 million largely because of transfers to capital reserves; the audit also highlights a $21.12M net pension liability and nearly $3.9M in OPEB obligations.
The Northern Cambria School Districtboard heard the results of the districts FY2023-24 audit at its public meeting, where the auditor issued an unmodified opinion and reviewed shifts in fund balances and long-term liabilities. Mark, the presenter, told the board that the audits financial statements were presented in conformity with professional standards and contained no departures.
The auditor said the district closed FY23-24 with a general fund balance of $3,295,000, a decrease of about $1.7 million (roughly 34%) from the prior year. He said the bulk of that decline reflected transfers from the general fund into the capital reserve fund and capital project fund rather than increased payments to outside vendors: "You actually moved money within the district to one earmarked pot for capital purposes," he said, adding that $2.2 million remained in the capital reserve fund and about $18,461,000 in capital project proceeds from bonds issued in 2022 and 2023.
The auditor highlighted the unassigned portion of the general fund: approximately 6.4% of the districts current-year budget as of June 30, 2024. He noted Pennsylvania Department of Education (PDE) guidance under section 6-688 that becomes relevant if a district seeks to raise taxes beyond the annual index, explaining that the districts unassigned fund balance is below the 8% threshold PDE references.
On compliance testing, the auditor said federal-program monitoring this year identified a single finding related to ESSER funds, down from several findings in the prior year; a corrective action plan from the district will accompany the audit submission to PDE. "We audited ESSERs and noted one finding this year, which was a decrease from the prior fiscal year," he said.
The auditor also reviewed longer-term, paper-based liabilities that appear on the districts corporate balance sheet. He reported a net pension (PSERS) liability of approximately $21,120,000 and other post-employment benefit (OPEB) liabilities of roughly $3.9 million, noting these actuarial estimates can vary year to year and do not represent an immediate cash call: "It's not as if you have to write a check tomorrow morning for $21,000,000," he said, describing the figures as required accounting entries that reflect assumptions about staff retention and actuarial factors.
Board members asked about specifics, including an uptick in food-service expenses that the auditor attributed primarily to increases in food and supplies rather than equipment purchases, which would be capitalized. Roland, the business manager, provided additional perspective on pro-forma fund balances if transfers were excluded, and both Mark and Roland reassured the board that the district is funding pension and OPEB obligations on an annual basis.
The presentation concluded with reminders about federal uniform guidance for federal programs, including ESSER, Title I and IDEA, and management-letter items the auditor suggested the district keep on hand when spending federal funds.
The board opened the floor to questions following the audit presentation; members and staff discussed next steps for budget planning and disclosures that will accompany the audit submission to PDE.
