Auditor: Strasburg School District 31J's 2023-24 financial statements present fairly; pension and OPEB estimates noted

DMC Auditing and Consulting, LLC issued an unmodified auditor's opinion on Strasburg School District 31J's financial statements for the year ended June 30, 2024, stating the statements "present fairly, in all material respects, the respective financial position" of the district.

The audit letter added that the engagement was conducted in accordance with generally accepted auditing standards and that the firm applied limited procedures to the district's required supplementary information. The auditor said it "encountered no significant difficulties in dealing with management" and reported no disagreements with management during the audit.

Why it matters: an unmodified opinion indicates an auditor found the district's financial statements to be free of material misstatement on the basis of the audit. The auditor also identified accounting estimates that are particularly sensitive to change, principally the district's proportionate shares of the Public Employees' Retirement Association (PERA) net pension liability and net OPEB liability, which appear throughout the notes to the financial statements.

DMC Auditing and Consulting emphasized the sensitivity of those estimates: the transcript notes management's estimate of the PERA net pension liability and net OPEB liability was based on demographic and investment assumptions that could change results materially. The audit work paper schedule in the notes shows the district's proportionate share of the SDTF net pension liability at $19,213,809 and the HCTF net OPEB liability at $463,935.

The auditor closed the report with a standard restriction on use, noting the audit materials are intended for the board and management. The district's presentation of the MD&A and supplementary budget schedules was included as required information but not separately audited for opinion.