A pre-audit presentation by Baker Tilly is generally a brief overview of what the audit will involve and what the school district and auditors should expect during the process.
For the School Board, it may cover:
Purpose and scope of the audit - What Baker Tilly will examine and the overall objectives of the annual financial audit.
Audit process and timeline - Key dates, fieldwork, completion of the audit, and when the final audit report is expected.
Areas of focus - Significant accounts, revenues, expenditures, grants, capital assets, debt, fund balances, and other areas that may require additional testing.
Internal controls - How auditors will review the District's financial procedures and controls to ensure transactions are properly authorized, recorded, and reported.
Compliance requirements - Required testing related to Pennsylvania school district requirements, federal programs, grants, and other applicable regulations.
Management's responsibilities - What information and documentation the District's administration and business office will provide to the auditors.
School Board's role - The Board's responsibility for oversight of the District's financial reporting and audit process.
Communication of findings - How Baker Tilly will communicate any significant findings, recommendations, or adjustments identified during the audit.
Prior-year follow-up - If applicable, they may discuss the status of any recommendations or issues identified in the previous audit.
In simple terms: The pre-audit presentation is designed to give the Board an understanding of what Baker Tilly will be auditing, how they will conduct the audit, what they will be looking for, and how the results will ultimately be communicated to the District and Board.
3.B. 2026-2027 Building and Department Budgets
Description: Building and department budgets are essential tools that allow our principals and department leaders to effectively manage the day-to-day operations of their schools while ensuring that students and staff have the resources necessary to be successful. These budgets are not simply spending plans—they are operational plans that align financial resources with educational priorities. Each building and department budget provides funding for the basic necessities required to operate efficiently, including:
School and Office Supplies - Everyday instructional and administrative materials needed to support classrooms, offices, and student services.
Basic Curriculum Needs - Supplemental instructional materials, classroom resources, and other items that support the district’s curriculum and academic programs.
Professional Memberships and Leadership Needs - Memberships in professional organizations, leadership development opportunities, and resources that keep administrators and staff informed of educational best practices, legal requirements, and emerging trends.
Copier and Postage Costs - Essential communication expenses that support instructional materials, parent communications, student records, and district operations.
Utilities - Costs associated with operating our facilities, including electricity, water, natural gas, sewer, and other building-related services necessary to provide safe and comfortable learning environments.
Importance of Regular Budget Reviews
Regular reviews of building and department budgets allow district administration and school leaders to:
Monitor spending throughout the fiscal year and ensure expenditures remain within budget.
Identify trends or unexpected costs early, allowing adjustments before issues become significant.
Reallocate available funds to address changing instructional or operational priorities.
Ensure purchasing decisions align with Board-approved goals and district strategic initiatives.
Improve forecasting and planning for future budget cycles by identifying recurring needs and cost trends.
Strengthen fiscal accountability and transparency through ongoing oversight.
Reduce the likelihood of year-end budget shortfalls or unspent funds.
Ensure public resources are being used efficiently and responsibly to maximize their impact on student learning.
Conclusion
Building and department budgets are foundational to the successful operation of our schools. They provide principals and department leaders with the resources necessary to meet daily operational needs while maintaining accountability for taxpayer dollars. Regular monitoring and review of these budgets ensure that district resources are used strategically, efficiently, and in a manner that best supports student achievement and the overall mission of the Keystone Central School District.
3.C. Title Funds 2026-2027
Description:
Federal Title Funds - Overview
Title I - Improving Academic Achievement: Provides additional support to students who are economically disadvantaged and at risk of falling behind academically. Funds may support instructional programs, intervention services, supplemental staff, family engagement, and educational resources. Funding is primarily determined by the number of students experiencing poverty in the district.
Title II - Supporting Effective Instruction: Supports the recruitment, retention, and professional development of teachers and school leaders. Funds may be used for professional learning, instructional coaching, leadership development, and activities designed to improve educator effectiveness. Allocations are generally based on formulas that consider student and poverty counts.
Title III - English Language Acquisition: Provides funding to support English Learners (ELs) in developing English proficiency and achieving academic success. Funds can support instructional materials, supplemental programs, professional development, and family engagement. Funding is primarily based on the number of English Learners served.
Title IV - Student Support and Academic Enrichment: Provides flexible funding to support a well-rounded education, safe and healthy schools, and effective use of technology. Funds may support areas such as STEM, counseling, mental health, school safety, technology, arts, and student enrichment. Allocations are generally formula-based and tied to student and poverty counts.
In general: Title funds are federal dollars allocated to school districts through formulas established under federal law. The amount a district receives is largely influenced by enrollment, poverty, and specific student populations, and each title has requirements governing how the funds may be spent.
3.D. Food Service Budget
Description:
Food Service Fund - School District Budget
The Food Service Fund operates separately from the district’s General Fund and is used to provide meals to students and staff. Revenue comes primarily from student meal payments, federal reimbursements, and state subsidies.
Federal Funding: The USDA provides reimbursement for qualifying school meals through programs such as the National School Lunch Program and School Breakfast Program. Reimbursement rates vary based on whether meals are free, reduced-price, or paid.
State Funding: Pennsylvania provides additional reimbursement for eligible school meals, supplementing federal funding.
Local Revenue: Student meal payments and other food service revenue also contribute to the program.
Expenses: Funds are used for food purchases, cafeteria supplies, equipment, salaries and benefits, and other costs necessary to operate the meal program.
In general: The amount of federal and state reimbursement is largely determined by the number and type of qualifying meals served, rather than simply by the district's overall enrollment. The goal is for the Food Service Fund to operate as a self-supporting program, with meal revenues and government reimbursements covering the cost of providing meals.
3.E. Benecon Loyalty Credit - $67,390.34
Description:
Highmark used to call this money wellness credits. That changed this year, and they are calling them loyalty credits, basically thanking you for staying with Highmark. Some schools will use part of their money for some type of wellness project/event or something for the employees.
3.F. Comprehensive District Wide Functional/Operations Study
Description:
A district-wide functional/operations study provides an objective assessment of whether taxpayer resources are being deployed effectively and whether the district's organizational structure supports student achievement and operational excellence. The study can be particularly valuable during periods of financial stress, leadership transition, enrollment changes, facility planning, or strategic planning initiatives.
Purpose of Functional/Operations Study
The Study is designed to:
Improve Operational Efficiency and effectiveness
Identify cost savings and resource optimization opportunities
Evaluate staffing levels and organizational structures
Benchmark district operations against similar school districts
Enhance service delivery to students, staff and the community
Support long-term strategic and financial planning
Identify risks, redundancies and operational gaps
The Study typically examine areas such as:
Finance and Business Operations
Human Resources
Facilities and Maintenance
Transporation
Food Service
Technology
Safety and Security
Administrative Structure and Governance
Through data analysis, interviews, document reviews and benchmarking against comparable districts, the study identifies strengths, operational challenges, opportunities for improvement, potential cost savings and recommendations to enhance overall district performance.
The ultimate goal is sto ensure resources are being utilized effectively while supporting student success and maintaining fiscal responsibility.