External auditor gives Erie City SD an unmodified opinion; fund balance growth noted

An external auditor told the Erie City School District board that the district’s financial statements received an unmodified audit opinion for the year ended June 30, 2025, with no federal or internal‑control findings.

"There were no findings, so, we can get that out of the way now," auditor Bridal of Zelenkovsky Axelrod said, delivering the required communications to the board. The auditors tested Title I, Title II and Title IV federal programs for single‑audit purposes and found no compliance concerns for those programs.

Bridal said the district’s general fund balance increased significantly in 2025 — driven largely by state subsidies and a new 'ready to learn' adequacy supplement — and that the unassigned fund balance is now about 12% of general fund expenditures, which the auditor noted is within commonly recommended targets. He also reported that the district issued roughly $9.995 million of new general‑obligation debt in 2025 and paid down about $13 million of prior debt.

Auditors discussed standard significant audit risks (management override and improper revenue recognition) as part of planning, but reported no material misstatements or internal control deficiencies in the testing. They also noted that ESSER federal pandemic funds will no longer appear in the general fund for FY26 and that the district should plan for that reduction.

Board members asked clarifying questions about the composition of fund balance, limits on property‑tax authority if unassigned balances exceed certain thresholds, and next steps for capital projects that rely on bond proceeds. The auditor said more detailed documents would be distributed to board staff and made available on request.