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Audit: Quakertown Community SD to receive unmodified opinion; food service deficit noted, staff to draft volunteer-rebate resolution
Summary
CLA auditor told the finance committee the district will receive an unmodified 2025 audit opinion, identified a minor $100 coding discrepancy that did not affect the opinion, reported a roughly $400,000 food-service operating deficit before a general-fund transfer and asked the committee to consider a proposed volunteer-rebate resolution for board action in April.
The district's external auditor and business-office staff updated the finance committee on the 2025 audit, second-quarter finances and a proposed volunteer tax-rebate framework.
Bob Kauffman (S10), representing CLA, said the audit team will issue an unmodified opinion and that testing identified one coding error in the disbursement cycle — a misposted reimbursement of $100 that did not rise to a level requiring a finding. "The amount of the transaction was a $100," Kauffman said; he added that the district's system migration and account-code changes likely contributed to the isolated error. Kauffman said auditors found no material weaknesses or significant deficiencies in internal control over financial reporting or in the major federal-award programs tested.
Kauffman described the implementation of GASB 101 (compensated absences) as an estimate-heavy standard that required management and the auditors to evaluate actuarial and trend data. He also reviewed the district's fund balances and said the unassigned fund balance is approximately $11.8 million and is within the state's maximum percentage and the board's fund-balance policy.
District business-office staff (S11) reviewed second-quarter year-to-date numbers, explaining timing differences on capital projects and increases in charter and out-of-district tuition obligations. Staff also reported that the food-service fund had an operating deficit on the order of about $400,000 before a transfer from the general fund (the transfer was reported in the meeting as about $405,000). Staff said that 2024–25 was the first full year operating under the community eligibility provisions K–12 and that projections were difficult as participation changed when meals became universally available.
On policy, staff introduced a proposed Act 172-style volunteer-rebate framework to provide up to a $500 maximum rebate tied to a participation/points schedule; staff asked the committee whether to move a resolution to the board and were asked to draft the resolution for the April board meeting so it could be effective for 2026–27 if approved.
What happens next: auditors will finalize reports and obtain management's signed representation letter; staff will prepare and present a volunteer-rebate resolution for the April board agenda and will circulate the Upper Bucks County Technical School budget materials to committee members as soon as they are available.
