School District Gets Clean Review from Auditor

The 's financial books are clean.

That's according to Bill Gorman, of the Northampton, Pa. based accounting firm Gorman and Associates, who was hired by the district this year to perform an independent audit.

"The district is in compliance with generally accepted accounting principals in all material respects," Gorman told the UDSD Board of School Directors at the body's work session Monday evening. "You have a clean opinion, with no qualifications of any kind, which is the best opinion you can get."

Gorman, a 30-year professional and distinguished member of various state and national accounting organizations, has a reputation for thorough audits, according to administrators.

"Mr. Gorman has a reputation for being a tough auditor," said district superintendent Michael Pladus. "It's sometimes suggested that you bring in a different auditor, almost like getting a second opinion."

In his presentation to the school board, Gorman said he checked for compliance with all state and federal regulations, finding no errors. However, he did say his firm found a few "deficiencies."

"We did find some deficiencies in controls that management has already addressed or is in the process of addressing," said Gorman.

Gorman also spoke at length to the board after member Art Levinowitz asked him his personal opinion on predictions for the future economic climate for Pennsylvania school districts. A public speaker who does not shy away from sharing his opinion, Gorman said he believed it was important for districts to build budgetary reserves.

"I am a very conservative type person, so I would preferably like to see a fund balance average approximately five to ten percent of your budget," said Gorman.

Given Upper Dublin's $85 million budget, that would equate to holding $4 million to $8.5 million in reserves. Upper Dublin has traditionally held anywhere from $3-4 million in recent years, although the fund balance could in the 2012-13 budget.

Gorman also used the invitation to wax economic theory.

"Government should have money in reserve for things like a catastrophe that can happen… and right now the local governments are the only governments in this country that are still balancing your budgets," said Gorman. "Because you can't say that for Harrisburg, and you can't say that for Washington, D.C. And if we get to the point where that spreads out to the local level, time to move, because catastrophe will happen."