Audit finds $2.03 million drop in Strasburg School District net position after construction spending

The independent auditor reported that Strasburg School District 31J’s government-wide net position fell $2,033,882 in fiscal 2025, a decline the financial documents attribute to the use of cash reserves for construction and improvement projects. The audit, dated Dec. 22, 2025, concludes the district’s financial statements “present fairly, in all material respects, the respective financial position” for the year ended June 30, 2025.

The district’s statement of net position shows total assets of $50,340,160 against liabilities of $45,544,934, yielding an ending net position of $7,899,088, down from $9,932,970 the prior year. At the fund level the General Fund balance closed at $4,317,027. Governmental activities recorded $18,368,375 in revenues and $20,402,257 in expenses for the year, with instruction reported at $11,686,426 and supporting services at $7,346,407.

The auditor’s Management Discussion and Analysis attributes the decline in net position primarily to capital activity: capital assets (net) grew to $42,657,307 as construction in progress moved into buildings and site improvements, while cash reserves were used to pay project costs. The district reduced certain long-term liabilities through scheduled repayments, and the audit includes reconciliations that explain the timing differences between governmental funds and government-wide reporting.

What’s next: the audit and budget documents call for continued monitoring of capital spending and fund balances as the district proceeds with construction and transitions projects from in‑progress to capitalized assets.