Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit topic
No spam. Unsubscribe anytime.
External auditors give Mechanicsburg Area SD a clean opinion for 2024–25
Summary
Independent auditors presented an unmodified (clean) opinion on the district’s 2024–25 financial statements, noted a single‑audit requirement after roughly $3.6 million in federal spending, and highlighted a $1.6 million transfer to the capital reserve and a $17.3 million general fund year‑end balance.
External auditors presented the Mechanicsburg Area School District’s audited financial statements for the year ended June 30, 2025, to the board during the Jan. 27 working session and issued an unmodified (clean) opinion.
‘‘The financial statements are presented fairly in all material respects,’’ said Sai Zervich of the audit firm Ritter, describing the opinion the firm issued and calling it the ‘‘best possible’’ result from an audit. Zervich said the district’s federal spending exceeded the single‑audit threshold (previously $750,000), with about $3.6 million in federal funds prompting a compliance audit (single audit) this year.
The auditors walked the board through key statements and disclosures. The general fund ending fund balance was reported at roughly $17.3 million after the district realized a budgeted deficit of about $2.3 million and transferred approximately $1.6 million into the capital reserve fund. Auditors also noted a restatement of beginning balances for compensated‑absence liabilities — about $1.5 million — caused by implementation of a new GASB standard (compensated absences) that required recalculation.
On district cafeterias, the food service (proprietary) fund showed an operating loss near $2.1 million before state and federal subsidies; after those subsidies the food service position improved by about $200,000 for the year.
Zervich said the compliance and single‑audit reports ‘‘did not identify any deficiencies’’ in internal control or instances of noncompliance that would change the opinion. The auditors also issued management comment letters noting upcoming GASB changes that will affect future reporting (GASB 103) and advising management of technical implementation items.
Board members praised the finance team and auditors for a ‘‘clean’’ package and said the results will inform upcoming budget conversations and the district’s continued capital planning.
