Independent Auditor: MASD Finances ‘Healthy’

Annual update details revenues, expenditures and likely end of some federal funding

By Adam Reinherz
The Tube City Almanac
March 07, 2025
Posted in: McKeesport and Region News

(Peter J. Vancheri updates MASD school directors. Photo by Adam Reinherz for Tube City Almanac)

An independent audit of McKeesport Area School District revealed healthy finances, according to accountant Peter J. Vancheri. The partner at Hosack, Specht, Muetzel & Wood delivered a positive outlook on the school’s budget during Thursday’s open agenda meeting and said a more substantive report will follow.

MASD possesses a “healthy fund balance” of approximately $24.5 million, of which $17.9 million is assigned and $6.5 million is unassigned,” Vancheri said on March 6.

What this means, he told school directors, is “you have money set aside for future shortfalls.”

Total revenue in the district topped $94 million with expenditures coming in at $74 million. Change in the fund balance — i.e., revenues that exceed expenditures — was a positive $8 million.

That $8 million sum is nearly $4 million more than directors anticipated when the budget was approved last year, he said.

Three reasons exist for the increase, according to Vancheri: interest based on investments; a nearly $1 million contribution from Dick’s Sporting Goods; and “basic instructional subsidy,” which was about $2.3 million more than school directors anticipated.

MASD’s $94 million revenue stems from local, state, federal and other financing sources. The majority — 61% or $57.4 million — comes from state funding. Local funding provides 23%,  other sources represent .2%.

Although federal funding provides about 15% or $14.6 million of MASD revenues, much of the funding includes resources delivered by the Elementary and Secondary School Emergency Relief (ESSER) Fund. Established by the American Rescue Plan Act of 2021, ESSER funds enabled schools to safely support operations and provide mental health needs while addressing pandemic-related concerns.

District revenue that came from federal funding relied on “a lot of the ESSER money,” Vancheri said. “Obviously you will not have that going forward.”

As for expenditures, nearly 60% or $51.5 million are tied to instruction. Another 23% or $19.9 million stem from support services. Almost 14% or about $12 million are related to “other financing uses,” Vancheri said.

Much like last year, MASD experienced a pleasant surprise from food services.

Last year, the district tallied a positive $520,000 in food services; this year the number was a positive $137,000. The drop between the two years, the accountant explained, was due to reimbursements and increased food costs.

Of note, the district has $107.8 million in outstanding bonds and a general outstanding note of $945,000.

Vancheri concluded his remarks by reminding directors the report currently exists in draft form.

Once “testing” is complete, a final document will be delivered to Joseph Villella, MASD’s Business Manager, who will distribute copies to school directors, Vancheri added.  

Though school directors will receive a printed copy, the public will be able to access a final copy of MASD’s audit report online, Villella said.

Adam Reinherz is a Pittsburgh-based journalist. He can be reached at adam.reinherz@gmail.com.

Originally published March 07, 2025.

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