HAZLETON AREA SCHOOL DISTRICT Hazle Township, Pennsylvania

HAZLETON AREA SCHOOL DISTRICT
Hazle Township, Pennsylvania
Financial and Single Audit Reports
For the Year Ended June 30, 2025

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TABLE OF CONTENTS
Page
FINANCIAL AUDIT
AUDITOR’S REPORT
Independent Auditor’s Report 	1
MANAGEMENT’S DISCUSSION AND ANALYSIS 	4
FINANCIAL STATEMENTS
DISTRICT-WIDE FINANCIAL STATEMENTS
Statement of Net Position 	12
Statement of Activities 	13
FUND FINANCIAL STATEMENTS
Governmental Funds
Balance Sheet 	14
Reconciliation of the Balance Sheet to the Statement of Net Position 	15
Statement of Revenues, Expenditures, and Changes in Fund Balances 	16
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances to the Statement of Activities 	17
Proprietary Fund
Statement of Net Position 	18
Statement of Revenues, Expenditures, and Changes in Net Position 	19
Statement of Cash Flows 	20
Fiduciary Fund
Statement of Net Position 	21
Statement of Changes in Net Position 	22
Notes to Financial Statements 	23
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in the Net OPEB Liability and Related Ratios
- 	District Other Post Employment Benefits Plan 	55
Schedule of the District’s Proportionate Share of the Net OPEB Liability
(Health Insurance Premium Assistance Plan) 	56
Schedule of the District’s OPEB Contributions
(Health Insurance Premium Assistance Plan) 	57
Schedule of the District’s Proportionate Share of the Net Pension Liability 	58
Schedule of the District’s Pension Contributions 	59
Budget to Actual Schedule
Schedule of Revenues, Expenditures, and Changes in Fund Balances,
Budget and Actual- General Fund 	61

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Page
Combining Financial Statements
Combining Balance Sheet – Capital Project Fund 	63
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balance – Capital Project Fund 	64
SINGLE AUDIT
Report of Independent Public Accountants on Internal Control Over
Financial Reporting and on Compliance and Other Matters Based On
An Audit of Financial Statements Performed In Accordance With
Governmental Auditing Standards 	65
Report of Independent Public Accountants on Compliance for Each Major
Federal Program and Report on Internal Control Over Compliance in
Accordance with Uniform Guidance 	67
Schedule of Expenditures of Federal and Certain State Awards 	70
Notes to the Schedule of Expenditures of Federal and
Certain State Awards 	72
Schedule of Findings and Questioned Costs 	73
Summary Schedule of Prior Audit Findings 	74

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Independent Auditor’s Report
Board of School Directors
Hazleton Area School District
Hazle Township, Pennsylvania
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the Hazleton Area School District (the
“District”), as of and for the year ended June 30, 2025 and the related notes to the financial statements,
which collectively comprise the District’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the respective
financial position of the governmental activities, business-type activities, each major fund and the aggregate
remaining fund information of the District, as of June 30, 2025, and the respective changes in financial
position and cash flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the District and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
The District’s management is responsible for the preparation and fair presentation of the financial
statements in accordance with accounting principles generally accepted in the United States of America,
and for the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a
going concern for one year after the date that the financial statements are issued.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our

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2
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is
not a guarantee that an audit conducted in accordance with GAAS will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a
substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a
reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• 	Exercise professional judgment and maintain professional skepticism throughout the audit.
• 	Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
• 	Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the District’s internal control. Accordingly, no such opinion is expressed.
• 	Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• 	Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the District’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control–related matters
that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, schedule of the District’s proportionate share of the net pension liability, schedule
of the District’s contributions, schedule of the District’s proportionate share of the PSERS net other post-
employment benefit plan liability, schedule of the District’s PSERS other post-employment benefit plan
contributions, schedule of the changes in the total other post-employment benefit plan liability and related
ratios be presented to supplement the basic financial statements. Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit
of the basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide
any assurance.

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3
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District’s basic financial statements. The accompanying supplementary information,
comprised of the individual fund statements, and the schedule of expenditures of federal awards, as required
by the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance), are presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The combining and individual fund statements, and the schedule of expenditures of federal awards are the
responsibility of management and were derived from and relates directly to the underlying accounting and
other records used to prepare the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit to the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the United States
of America. In our opinion, the combining and individual fund statements, and the schedule of expenditures
of federal awards are fairly stated in all material respects in relation to the basic financial statements as a
whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 12,
2025, on our consideration of the District’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the District’s internal control
over financial reporting and compliance.
Shamokin, Pennsylvania
December 12, 2025

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HAZLETON AREA SCHOOL DISTRICT
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
4
This Management’s Discussion and Analysis (MD&A) is intended to provide a narrative overview and
analysis of the financial activities of the Hazleton Area School District (the “School District”) for the year
ended June 30, 2025, compared to June 30, 2024. The School District’s financial performance is
discussed and analyzed within the context of the financial statements and the disclosures that follow. This
discussion focuses on the School District’s financial performance as a whole; readers should also review
the basic financial statements and the notes thereto to enhance their understanding of the School District’s
financial performance.
INTRODUCTION
The Hazleton Area School District is a school district of the second class organized under the laws of the
Commonwealth of Pennsylvania. It operates a public school system for residents in Luzerne, Carbon and
Schuylkill Counties.
The accounting policies of the Hazleton Area School District conform to generally accepted accounting
principles as applicable to governmental units as provided by Governmental Accounting Standards Board.
The basic financial statements of the School District are composed of district-wide financial statements,
fund financial statements, and notes to the financial statements. The district-wide financial statements are
prepared on an accrual basis of accounting under which all revenues and costs of providing services are
reported for all activities of the School District. The district-wide statements are prepared on an economic
resources measurement focus which includes all the School District’s resources, capital and financial,
current and long-term. The two statements included in district-wide reporting are the Statement of Net
Position and the Statement of Activities. The Statement of Net Position is used to report all the School
District’s assets and liabilities. The Statement of Activities is used to report all changes in net assets. Both
financial statements distinguish between governmental and business-type activities. Governmental
activities generally are financed through taxes, intergovernmental revenues and other non-exchange
funds. Business-type activities are financed in whole or in part by fees charged to external parties for
goods and services. These activities are reported as enterprise funds.
The fund financial statements provide a more detailed look at specific activities or groups of activities as
compared to the district-wide statements. The fund financial statements are presented on a modified
accrual basis, whereas governmental activities in the district-wide financial statements are presented on an
accrual basis of accounting. The fund financial statements are divided into governmental funds,
proprietary funds and fiduciary fund statements. Major fund presentation is required for governmental and
enterprise funds. The School District reports each major fund in a separate column on the fund financial
statements. The major funds for governmental activities are the General Fund, Student Sponsored
Activities Fund and Capital Project Fund. The major fund for the proprietary funds is the Food Service
Fund.
DISTRICT-WIDE FINANCIAL ANALYSIS
The following charts show a two-year comparison of the Condensed Statement of Net Position,
Condensed Statement of Activities, Capital Assets-Net of Depreciation, and Outstanding Long-Term
Debt for both governmental activities and business-type activities:

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HAZLETON AREA SCHOOL DISTRICT
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
5
Increase 	Increase
2025 	2024 	(Decrease) 	2025 	2024 	(Decrease)
Current Assets 	128,608,218	$ 	98,003,060	$ 	30,605,158	$ 	4,831,575	$ 	4,207,090	$ 	624,485	$
Noncurrent Assets 	161,866,943 	153,156,630 	8,710,313 	2,268,525 	1,359,830 	908,695
Total Assets 	290,475,161 	251,159,690 	39,315,471 	7,100,100 	5,566,920 	1,533,180
Deferred Outflows 	46,324,000 	48,946,000 	(2,622,000) 	1,407,676 	1,488,676 	(81,000)
Long-Term Debt Outstanding 	340,495,538 	349,540,739 	(9,045,201) 	7,630,000 	7,863,000 	(233,000)
Other Liabilities 	39,122,337 	38,661,613 	460,724 	230,378 	211,518 	18,860
Total Liabilities 	379,617,875 	388,202,352 	(8,584,477) 	7,860,378 	8,074,518 	(214,140)
Deferred Inflows 	8,843,000 	10,489,000 	(1,646,000) 	315,961 	367,000 	(51,039)
Net Position:
Invested in Capital Assets,
Net of Related Debt 	92,340,981 	62,722,529 	29,618,452 	2,268,525 	1,359,830 	908,695
Restricted 	24,450,901 	5,536,030 	18,914,871 	- 	- 	-
Unrestricted 	(168,453,596) 	(166,844,221) 	(1,609,375) 	(1,937,088) 	(2,745,752) 	808,664
Total Net Position 	(51,661,714)	$ 	(98,585,662)	$ 	46,923,948	$ 	331,437	$ 	(1,385,922)	$ 	1,717,359	$
Governmental
Activities
Business-Type
Activities
CONDENSED STATEMENT OF NET POSITION

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HAZLETON AREA SCHOOL DISTRICT
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
6
Increase 	Increase
2025 	2024 	(Decrease) 	2025 	2024 	(Decrease)
REVENUES:
Program Revenues:
Charges for services 	468,621	$ 	673,161	$ 	(204,540)	$ 	412,963	$ 	453,231	$ 	(40,268)	$
Operating and capital
grants and contributions 	90,846,760 	76,963,082 	13,883,678 	10,770,012 	10,748,633 	21,379
General Revenues:
Property taxes 	69,174,163 	62,846,668 	6,327,495 	- 	- 	-
State formula aide 	70,984,597 	68,221,439 	2,763,158 	- 	- 	-
Other 	25,390,135 	23,476,761 	1,913,374 	100,866 	64,136 	36,730
TOTAL REVENUES: 	256,864,276 	232,181,111 	24,683,165 	11,283,841 	11,266,000 	17,841
EXPESNES:
Instruction 	134,786,700 	127,212,985 	7,573,715 	- 	- 	-
Instructional student support 	11,458,993 	10,494,479 	964,514 	- 	- 	-
Administration and business 	18,547,707 	16,356,184 	2,191,523 	- 	- 	-
Maintenance and operations 	12,515,750 	11,879,674 	636,076 	- 	- 	-
Transportation 	12,037,964 	9,131,275 	2,906,689 	- 	- 	-
Other 	20,593,214 	19,034,306 	1,558,908 	9,566,482 	9,631,503 	(65,021)
TOTAL EXPENSES: 	209,940,328 	194,108,903 	15,831,425 	9,566,482 	9,631,503 	(65,021)
CHANGE IN NET POSITION 	46,923,948 	38,072,208 	8,851,740 	1,717,359 	1,634,497 	82,862
NET POSITION BEGINNNING 	(98,585,662) 	(136,657,870) 	38,072,208 	(1,385,922) 	(3,020,419) 	1,634,497
NET POSITION ENDING 	(51,661,714)	$ 	(98,585,662)	$ 	46,923,948	$ 	331,437	$ 	(1,385,922)	$ 	1,717,359	$
CONDENSED STATEMENT OF ACTIVITIES
Governmental
Activities
Business-Type
Activities
2025 	2024
Land and improvements 	19,947,003	$ 	12,485,543	$
Buildings and building improvements 	122,457,465 	116,921,753
Furniture and equipment 	8,213,622 	8,049,304
Construction-in-progress 	11,248,853 	15,700,030
Total 	161,866,943	$ 	153,156,630	$
CAPITAL ASSETS AT JUNE 30, (NET OF ACCUMULATED DEPRECIATION)

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HAZLETON AREA SCHOOL DISTRICT
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
7
Balance
June 30, 2024 	Additions 	Reductions
Balance
June 30, 2025
General Obligation Bonds, Net 	95,931,443	$ 	10,222,607	$ 	(12,274,165)	$ 	93,879,885	$
Net Pension Liability 	229,716,000 	- 	(7,712,000) 	222,004,000
Compensated Absences 	6,991,014 	1,912,992 	(1,213,166) 	7,690,840
OPEB Obligation 	16,389,000 	196,000 	- 	16,585,000
Lease Liability 	513,283 	- 	(177,470) 	335,813
Total Long-Term Liability 	349,540,740	$ 	12,331,599	$ 	(21,376,801)	$ 	340,495,538	$
OUTSTANDING LONG-TERM DEBT
Analysis of these charts indicates that the total net position for governmental activities increased by
$38,072,208. 	Revenues 	exceeded 	expenses 	mainly 	due 	to 	additional 	State 	and 	Local 	funding,
depreciation, debt service, compensated absences, and the net difference between projected and actual
investment earning of the PSERS retirement plan.
Business-type activities resulted in a $1,634,497 increase in total net position. Revenues exceeded
expenses by this amount mainly due to the federal and state reimbursements for meals served, as well as
the strength of the School District wide CEP program.
The cost of health benefits remains one of the School Districts largest expenditures. During the 2024-
2025 fiscal year, the School District spent approximately $19,845,000 net on health benefits which was
approximately $1,203,000 less than budget.
The chart showing capital assets (net of depreciation) indicates an increase in capital assets. This increase
was the result of current depreciation expense of $8,882,888 offset by net capital outlays of $22,044,378,
mainly due to ESCO projects and various field projects.
General obligation bonds, net, decreased overall. The School District made debt payments of $12,025,000
on its General Obligation Bonds and recognized accretion of $215,108. 	The School District also
borrowed $9,995,000 to fund the third phase of the ESCO project.
Net pension liability decreased due to the net difference between projected and actual investment earning,
offset by the changes in plan assumptions.
FUND FINANCIAL ANALYSIS
The following data shows the changes in General Fund balance for the past ten years and compares the
changes in the Condensed Budget vs. Actual General Fund:

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HAZLETON AREA SCHOOL DISTRICT
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
8
CHANGES IN GENERAL FUND BALANCE
School Year
General Fund
Balance
Percent of Budgeted
Expenditures
2024-2025 	65,460,670	$ 	26.7%
2023-2024 	54,033,572 	24.0%
2022-2023 	37,737,005 	17.9%
2021-2022 	28,166,728 	15.0%
2020-2021 	22,272,421 	13.4%
2019-2020 	14,802,653 	9.1%
2018-2019 	11,073,136 	7.1%
2017-2018 	6,788,428 	4.6%
2016-2017 	10,807,912 	7.6%
2015-2016 	7,512,765 	5.3%
CONDENSED BUDGET VERSUS ACTUAL GENERAL FUND 2024 – 2025
Final
Budget 	Actual
Variance with
Final Budget
Revenues 	244,819,516	$ 	256,122,839	$ 	11,303,323	$
Expenditures 	225,553,388 	211,567,346 	13,986,042
Other financing sources (uses) 	(19,266,128) 	(33,128,395) 	(13,862,267)
Net change in fund balance 	-	$ 	11,427,098	$ 	11,427,098	$
The General Fund balance chart indicates a positive change. The General Fund, actual expenditures were
less than budgeted expenditures by $13,986,042 and actual revenues were greater than budgeted revenues
by $11,303,323. The net effect of all variations was to increase the General Fund Balance by
$11,427,098. Some of the major factors in the current year results are attributable to the following. Local
revenues received for Real Estate Taxes, Earned Income Taxes, Transfer Taxes, and Interest Earnings
were greater than budget by $613,714, $2,333,332, $1,643,725 and $2,537,798, respectively. Basic
Education/Ready to Learn was less than budget by $2,859,963. State Share of retirement contributions
was greater than budget by $1,285,463. Federal ARP ESSER III funds were less than budget by
$2,413,788, due to the timing of the grant closeout. Salaries and benefits were less than budget,
$6,165,427, due to district wide staffing shortages.
DISTRICT-WIDE VS FUND FINANCIAL STATEMENTS
The Fund Financial Statements show an increase of $11,427,095 in the fund balance for governmental
funds, while the District-wide Financial Statements show an increase of $46,923,948 in Net Position for
Governmental Activities. The principal cause of this difference is due to capital outlays exceeding
depreciation, repayment/borrowing of long-term debt, pension and OPEB benefits earned being greater
than contributions. A complete analysis is shown in the District’s Annual Financial Report.

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HAZLETON AREA SCHOOL DISTRICT
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
9
LABOR RELATIONS
All employees worked under existing contracts or salary schedules during the 2024-2025 fiscal year. The
contract with the International Brotherhood of Teamsters, which represents Custodial, Maintenance,
Cleaning Persons and Mechanics, extended from July 1, 2022 to June 30, 2027. The contract with the
Hazleton Area Education Association, which represents Teachers and other Professionals, extends from
September 1, 2025 through August 31, 2030. The contract with the International Union, Security, Police
and Fire Professionals of America, which represents Security Personnel, extends from July 1, 2025
through June 30, 2030. The contract with the Hazleton Area Education Support Personnel Association,
which represents Aides, Cafeteria workers and Secretaries, extended from July 1, 2022 through June 30,
2027. The Superintendent of Schools and Secretary/Business Manager, the Treasurer/Assistant Business
Manager, three Assistants to the Superintendent of Schools, certain confidential secretaries, and various
others are covered by separate employment contracts, the remaining administrators are covered by a
compensation plan that extended from July 1, 2025 through June 30, 2030.
TEN LARGEST REAL ESTATE TAXPAYERS
The ten largest real estate taxpayers in the School District for the 2024-2025 assessed valuation of their
real estate are as follows:
Taxpayer 	Business 	Assessed Valuation
Warrior Trail Properties (Niagara) 	Manufacturer 	70,902,600	$
NEPA 309 Building LLC 	Distribution 	50,029,100
Retail Distribution East, LLC (AE) 	Distribution 	46,117,900
Cabot Properties LP 	Manufacturer 	41,750,200
550 Oak Ridge Road (Amazon) 	Distribution 	41,431,800
Humboldt Realty (Romark) 	Warehousing 	34,359,000
Lineage PA Hazleton RE LLC 	Warehousing 	28,880,000
IRIS USA Inc 	Manufacturer 	27,847,900
TSP Hazleton Owner LLC 	Warehousing 	24,047,100
United States Cold Storage, LLC 	Distribution 	23,500,000
388,865,600	$

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HAZLETON AREA SCHOOL DISTRICT
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
10
TEN LARGEST EMPLOYERS
The ten largest employers in the School District for the 2024-2025 are as follows:
Employer 	Product/Service
Estimated
Employees
Amazon Fulfillment 	Retail distribution 	2,740
Hazleton Area School District 	Education 	1,632
Lehigh Valley Health Network 	Healthcare 	981
Cargill Meat Solutions 	Retail meat processing facility 	812
Autozone Distribution Center 	Distributor of auto parts 	650
American Eagle Outfitters 	Retail distribution 	550
Michael's Stores 	Distributor of handcraft products 	460
The Hershey Company 	Molded chocolate products 	450
AMCOR 	Extrusion and printing of polyfilm 	389
Fabri-Kal Corp 	Packaging products 	368
INCREASING ENROLLMENTS/BUILDING PROGRAM
The following chart shows the student enrollment history for the past ten years.
School Year 	Enrollment
Percentage
Increase (Decrease)
2024-2025 	13,706 	3.47%
2023-2024 	13,246 	3.60%
2022-2023 	12,786 	3.00%
2021-2022 	12,413 	3.65%
2020-2021 	11,976 	3.29%
2019-2020 	11,594 	0.51%
2018-2019 	11,535 	1.14%
2017-2018 	11,405 	1.62%
2016-2017 	11,223 	2.31%
2015-2016 	10,970 	2.02%
The chart indicates an overall increase in student enrollments over the past ten-year period.
SUMMARY
The District’s financial position has strengthened due to increased state-level supplements and continued
growth in local property and wage taxes. However, staffing shortages persist across all areas. While
pandemic-related funding provided significant one-time support, we remain cautious about potential near-
term economic shifts.
The Act 1 Index is used to determine the maximum real estate tax increase the School District may levy
without PA Department of Education exception or voter approval. Real estate tax levy for the School
District is unique due to the footprint covering portions of three counties. Multi-county rebalancing based
on methodology of Section 672.1 of the School Code caused an increase of 8.33%, a decrease of

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HAZLETON AREA SCHOOL DISTRICT
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
11
(12.27%) and an increase of 4.76% for Luzerne, Carbon and Schuylkill Counties, respectively, during the
2024-2025 year. This shows that the School District may not realize the full benefit of the Act 1 Index, as
the increase stops as soon as anyone of the included municipalities reaches the index.
Current year General Fund operating results increased the fund balance by $11,427,098 to a total fund
balance of $65,460,670, which is 26.7% of the budgeted expenditures for 2024-2025. 	The District is
actively pursuing strategies to expand student capacity. The Board has approved Phase IV of the Energy
Savings Project to ensure facilities operate efficiently. Construction of the fieldhouse is underway and
scheduled for completion in fall 2026. Planning continues for a new school building on the High School
campus, and the Board remains committed to allocating excess fund balances to capital projects.
Beyond financial considerations, the School District faces the challenge of sustaining and enhancing
educational programs while integrating non-English-speaking students. Additionally, it must continue
monitoring and managing class sizes. The Superintendent and staff remain committed to these efforts.
REQUESTS FOR INFORMATION
Questions concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Business Office, Hazleton Area School District, 1515 West 23rd
Street, Hazle Township, PA 18202.

-- 14 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Statement of Net Position
June 30, 2025
Governmental 	Business-Type
Activities 	Activities 	Total
Assets and Deferred Outflows of Resources
Current Assets:
Cash and Cash Equivalents 	113,798,031	$ 	3,734,672	$ 	117,532,703	$
Taxes Receivables, Net 	1,178,643 	- 	1,178,643
Internal Balances 	(443,973) 	443,973 	-
Due from other Governments 	11,766,210 	238,906 	12,005,116
Other Receivables, Net 	1,703,691 	3,778 	1,707,469
Inventories 	35,981 	410,246 	446,227
Right-to-Use Lease Asset 	323,254 	- 	323,254
Prepaid Expenses 	- 	- 	-
Other Assets 	246,381 	- 	246,381
Total Current Assets 	128,608,218 	4,831,575 	133,439,793
Non-Current Assets:
Land and Improvements, Net 	19,947,003 	- 	19,947,003
Buildings and Improvements, Net 	122,457,465 	- 	122,457,465
Furniture and Equipment, Net 	8,213,622 	2,268,525 	10,482,147
Construction in Progress 	11,248,853 	- 	11,248,853
Total Non-Current Assets 	161,866,943 	2,268,525 	164,135,468
Deferred Outflows of Resources:
Deferred Outflows of Resources, Pension Activity 	42,484,000 	1,296,676 	43,780,676
Deferred Outflows of Resources, OPEB 	3,840,000 	111,000 	3,951,000
Total Deferred Outflows of Resources 	46,324,000 	1,407,676 	47,731,676
Total Assets and Deferred Outflows of Resources 	336,799,161 	8,507,776 	345,306,937
Liabilities, Deferred Inflows of Resources and Net Position
Liabilities:
Accounts Payable 	13,879,660 	164,362 	14,044,022
Accrued Salaries and Benefits 	23,577,136 	- 	23,577,136
Payroll Deductions and Withholdings 	386,499 	- 	386,499
Accrued Interest Payable 	995,325 	- 	995,325
Other Liabilities 	18,970 	21,600 	40,570
Unearned Liabilities 	264,747 	44,416 	309,163
Long-Term Liabilities:
Portion Due or Payale Within One-Year:
Bonds Payable, Net 	11,330,509 	- 	11,330,509
Compensated Absences, Net 	1,301,217 	- 	1,301,217
Lease Liability, Net 	187,745 	- 	187,745
Portion Due or Payable After One-Year:
Bonds Payable 	82,549,376 	- 	82,549,376
Net Pension Liability 	222,004,000 	7,068,000 	229,072,000
Lease Liability 	148,068 	- 	148,068
Compensated Absences 	6,389,623 	- 	6,389,623
Net OPEB Obligation 	16,585,000 	562,000 	17,147,000
Total Liabilities 	379,617,875 	7,860,378 	387,478,253
Deferred Inflows of Resources:
Deferred Inflows of Resources, Pension Activity 	3,555,000 	144,961 	3,699,961
Deferred Inflows of Resources, OPEB 	5,288,000 	171,000 	5,459,000
Total Deferred Inflows of Resources 	8,843,000 	315,961 	9,158,961
Net Position:
Net Investment in Capital Assets 	92,340,981 	2,268,525 	94,609,506
Restricted 	24,450,901 	- 	24,450,901
Unrestricted 	(168,453,596) 	(1,937,088) 	(170,390,684)
Total Net Position 	(51,661,714)	$ 	331,437	$ 	(51,330,277)	$
See notes to financial statements which are an integral part of this statement
12

-- 15 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Statement of Activities
For the Year Ended June 30, 2025
Charges 	Operating 	Capital
for 	Grants and 	Grants and 	Governmental 	Business-Type
Functions/Programs 	Expenses 	Services 	Contributions 	Contributions 	Activities 	Activities 	Total
Governmental Activities:
Instruction 	134,786,700	$ 	468,621	$ 	65,119,848	$ 	-	$ 	(69,198,231)	$ 	-	$ 	(69,198,231)	$
Instructional Student Support 	11,458,993 	- 	5,571,645 	- 	(5,887,348) 	- 	(5,887,348)
Administrative and Financial Support Services 	18,547,707 	- 	8,755,897 	- 	(9,791,810) 	- 	(9,791,810)
Operation and Maintenance of Plant Services 	12,515,750 	- 	- 	753,271 	(11,762,479) 	- 	(11,762,479)
Pupil Transportation 	12,037,964 	- 	5,019,952 	- 	(7,018,012) 	- 	(7,018,012)
Student Activities 	3,051,734 	- 	483,820 	- 	(2,567,914) 	- 	(2,567,914)
Community Services 	1,890,073 	- 	6,523 	- 	(1,883,550) 	- 	(1,883,550)
Interest on Long-Term Debt 	7,529,991 	- 	5,135,804 	- 	(2,394,187) 	- 	(2,394,187)
Depreciation/Amortization - Unallocated 	8,121,416 	- 	- 	- 	(8,121,416) 	- 	(8,121,416)
Total Governmental Activities 	209,940,328 	468,621 	90,093,489 	753,271 	(118,624,947) 	- 	(118,624,947)
Business-Type Activities
Food Services 	9,566,482 	412,963 	10,770,012 	- 	- 	1,616,493 	1,616,493
Total Primary Government 	219,506,810	$ 	881,584	$ 	100,863,501	$ 	753,271	$ 	(118,624,947) 	1,616,493 	(117,008,454)
General Revenues and Transfers
Property Taxes, Levied for General Purposes, Net 	69,174,163 	- 	69,174,163
Other Taxes Levied 	20,336,144 	- 	20,336,144
Grants and Entitlements Not Restricted to Specific Programs 	70,984,597 	- 	70,984,597
Investment Earnings, Unrestricted 	4,745,538 	100,866 	4,846,404
Disposal of Fixed Assets 	1,600 	- 	1,600
Miscellaneous 	306,853 	- 	306,853
Total General Revenues and Transfers 	165,548,895 	100,866 	165,649,761
Change in Net Position 	46,923,948 	1,717,359 	48,641,307
Net Position - Beginning 	(98,585,662) 	(1,385,922) 	(99,971,584)
Net Position - Ending 	(51,661,714)	$ 	331,437	$ 	(51,330,277)	$
Net Expense and Changes in Net Assets	Program Revenues
See notes to financial statements which are an integral part of this statement
13

-- 16 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Balance Sheet
Governmental Funds
June 30, 2025
Student 	Total
General 	Sponsored 	Capital 	Governmental
Fund 	Activities 	Projects 	Funds
Assets:
Cash and Cash Equivalents 	106,833,312	$ 	347,718	$ 	6,617,001	$ 	113,798,031	$
Taxes Receivables, Net 	1,178,643 	- 	- 	1,178,643
Due from Other Funds 	- 	- 	17,922,161 	17,922,161
Due from Other Governments 	11,766,210 	- 	- 	11,766,210
Other Receivables, Net 	1,703,691 	- 	- 	1,703,691
Inventories 	35,981 	- 	- 	35,981
Prepaid Expenses 	- 	- 	- 	-
Total Assets 	121,517,837	$ 	347,718	$ 	24,539,162	$ 	146,404,717	$
Liabilities:
Accounts Payable 	13,443,681	$ 	4,359	$ 	431,620	$ 	13,879,660	$
Accrued Salaries and Benefits 	23,577,136 	- 	- 	23,577,136
Payroll Deductions and Withholdings 	386,499 	- 	- 	386,499
Due to other Funds 	18,366,134 	- 	- 	18,366,134
Other Liabilities 	18,970 	- 	- 	18,970
Total Liabilities 	55,792,420 	4,359 	431,620 	56,228,399
Deferred Inflows of Resources 	264,747 	- 	- 	264,747
Fund Balances
Nonspendable Fund Balance 	35,981 	- 	- 	35,981
Restricted Fund Balance 	- 	- 	24,107,542 	24,107,542
Committed Fund Balance 	45,548,563 	- 	- 	45,548,563
Assigned Fund Balance 	500,000 	343,359 	- 	843,359
Unassigned Fund Balances 	19,376,126 	- 	- 	19,376,126
Total Fund Balances 	65,460,670 	343,359 	24,107,542 	89,911,571
Total Liabilities, Deferred Inflows of
Resources & Fund Balances 	121,517,837	$ 	347,718	$ 	24,539,162	$ 	146,404,717	$
See notes to financial statements which are an integral part of this statement
14

-- 17 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Reconciliation of the Balance Sheet to the
Statement of Net Position
Governmental Funds
June 30, 2025
Fund Balance - Total Governmental Funds 	89,911,571	$
Amounts reported for governmental activities in the statement of net position
are different because:
Capital assets used in governmental activities are not reported as assets
in governmental funds. The cost of assets is $348,397,177 and the
accumulated depreciation is $186,530,234. 	161,866,943
Unamortized portion of bond issuance is not a financial resource and
therefore not reported as assets in governmental funds. The bond
insurance for the debt issue was $452,017 and the accumulated
amortization was $205,636. 	246,381
Unamortized portion of bond discount is not a financial resource and
therefore not reported as assets in governmental funds. The original
bond discount for the debt issue was $361,737 and the accumulated
amortization was $93,824. 	267,913
Unamortized portion of bond premium is not a financial resource and
therefore not reported as assets in governmental funds. The original
bond premium for the debt issue was $5,977,278 and the accumulated
amortization was $3,994,480. 	(1,982,798)
Unamortized portion of lease assets are not a financial resource and
therefore not reported as assets in government funds. The lease
asset was $1,341,028 and the accumulated amortization was $1,017,774 	323,254
Some liabilities are not due and payable in the current period and therefore
are not reported in the funds. Those liabilities consist of:
Bonds Payable 	(92,165,000)
Lease Liability 	(335,813)
Accrued Interest 	(995,325)
Net OPEB Obligation 	(16,585,000)
Compensated Absences 	(7,690,840)
Net Pension Liability 	(222,004,000)
Deferred outflows and inflows or resources related to pensions and OPEB are
applicable to future periods and, therefore, are not reported in the funds:
Deferred Outflows of Resources Related to Pensions 	42,484,000
Deferred Outflows of Resources Related to OPEB 	3,840,000
Deferred Inflows of Resources Related to Pensions 	(3,555,000)
Deferred Inflows of Resources Related to OPEB 	(5,288,000)
Net Position of Governmental Activities 	(51,661,714)	$
See notes to financial statements which are an integral part of this statement
15

-- 18 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2025
Student 	Total
General 	Sponsored 	Capital 	Governmental
Fund 	Activities 	Projects 	Funds
Revenues:
Local Sources 	96,761,918	$ 	393,818	$ 	343,806	$ 	97,499,542	$
State Sources 	142,508,113 	- 	- 	142,508,113
Federal Sources 	16,852,808 	- 	- 	16,852,808
Total Revenues 	256,122,839 	393,818 	343,806 	256,860,463
Expenditures:
Instruction 	139,444,584 	- 	- 	139,444,584
Support Services 	61,072,746 	- 	173,494 	61,246,240
Non-Instructional Services 	4,667,761 	345,003 	- 	5,012,764
Capital Outlay 	6,382,255 	- 	9,309,355 	15,691,610
Total Expenditures 	211,567,346 	345,003 	9,482,849 	221,395,198
Excess (Deficiency) of Revenues
Over Expenditures 	44,555,493 	48,815 	(9,139,043) 	35,465,265
Other Financing Sources (Uses):
Disposal of Fixed Assets 	1,600 	- 	- 	1,600
Debt Service - Principal 	(12,208,297) 	- 	- 	(12,208,297)
Debt Service - Interest 	(2,821,148) 	- 	- 	(2,821,148)
Bond Proceeds 	- 	- 	9,995,000 	9,995,000
Bond Premiums 	- 	- 	12,499 	12,499
Insurance Recoveries 	2,212 	- 	- 	2,212
Refund of Prior Year Revenues 	(105,162) 	- 	- 	(105,162)
Capital Fund Transfers 	(17,997,600) 	- 	17,997,600 	-
Other Financing Sources, Net 	(33,128,395) 	- 	28,005,099 	(5,123,296)
Net Change in Fund Balances 	11,427,098 	48,815 	18,866,056 	30,341,969
Fund Balance - Beginning 	54,033,572 	294,544 	5,241,486 	59,569,602
Fund Balance - Ending 	65,460,670	$ 	343,359	$ 	24,107,542	$ 	89,911,571	$
See notes to financial statements which are an integral part of this statement
16

-- 19 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances to the Statement of Activities
Governmental Funds
For the Year Ended June 30, 2025
Net Change in Fund Balance - Total Governmental Funds 	30,341,969	$
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities, the cost of those assets is allocated over their estimated useful lives
and reported as depreciation expense. This is the amount by which depreciation
exceeded capital outlays in the current period.
Capital Outlays 	17,593,202
Gain on Disposal of Assets 	1,600
Less Depreciation Expense 	(8,882,888) 	8,711,914
In the statemnet of activities, appreciation on compound interest bonds is accrued
on related debt. 	(215,108)
Repayment of long-term debt is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net assets.
Bonds Payable 	2,030,000
Lease Liability 	196,840 	2,226,840
Repayment of leases is an expenditure in the governmental funds, but the repayment
reduces lease liabilities in the statement of net assets. 	(183,297)
In the statement of activities, interest is accrued on outstanding debt, whereas in
governmental funds, an interest expenditure is reported when due. 	(39,058)
In the statement of activities, compensated absences are accrued, whereas in
governmental funds, a benefit expenditure is reported when taken. 	(699,826)
Governmental funds report pension and OPEB contributions as expenditures. However,
in the statement of activities, the cost of benefits earned net of employee
contributions is reported as expense.
District Pension Contributions 	30,326,080
District OPEB Contributions 	898,220
Cost of Benefits Earned Net of Employee Contributions - Pension 	(23,829,952)
Cost of Benefits Earned Net of Employee Contributions - OPEB 	(853,600) 	6,540,748
Bond insurance costs of $452,017 were reported on the governmental fund statements
when the debt was incurred. Amortization of insurance costs are recorded in the
statement of activities. 	3,100
Bond discount of $361,737 were reported on the government fund statements when the
debt was incurred was incurred. Amortization of bond discounts are recorded in the
statement of activities. 	(18,371)
Bond premium of $5,977,278 were reported on the government fund statements when
the debt was incurred. Amortization of bond premiums are recorded in the
statement of activities. 	255,037
Change in Net Position of Governmental Activites 	46,923,948	$
See notes to financial statements which are an integral part of this statement
17

-- 20 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Statement of Net Position
Proprietary Fund
June 30, 2025
Food
Service
Assets and Deferred Outflows of Resources
Current Assets:
Cash 	3,734,672	$
Inventories 	410,246
Due from other Governments 	238,906
Due from other Funds 	443,973
Other Recievables, Net 	3,778
Total Current Assets 	4,831,575
Non-Current Assets:
Furniture and Equipment, Net 	2,268,525
Total Non-Current Assets 	2,268,525
Deferred Outflows of Resources:
Deferred Outflows of Resources, Pension Activity 	1,296,676
Deferred Outflows of Resources, OPEB 	111,000
Total Deferred Outflows of Resources 	1,407,676
Total Assets and Deferred Outflows of Resources 	8,507,776
Liabilities, Deferred Inflows of Resources and Net Position
Liabilities:
Accounts Payable 	164,362
Unearned Revenue 	44,416
Other Current Liabilities 	21,600
Other Postemployment Benefits 	562,000
Net Pension Liability 	7,068,000
Total Liabilities 	7,860,378
Deferred Inflows of Resources:
Deferred Inflows of Resources, Pension Activity 	144,961
Deferred Inflows of Resources, OPEB 	171,000
Total Deferred Inflows of Resources 	315,961
Net Position:
Net Investment in Capital Assets 	2,268,525
Unrestricted Net Deficit 	(1,937,088)
Total Net Position 	331,437	$
See notes to financial statements which are an integral part of this statement
18

-- 21 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Statement of Revenues, Expenditures, and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2025
Food
Service
Operating Revenues
Food Service 	412,963	$
Operating Expenses
Other Purchased Services 	3,754,598
Salaries 	3,040,404
Employee Benefits 	1,696,962
Supplies 	828,465
Property Services 	90,400
Depreciation 	135,735
Other Operating Expenses 	19,918
Total Operating Expenses 	9,566,482
Operating Gain (Loss) 	(9,153,519)
Non-Operating Revenues (Expenses)
Federal Subsidies 	9,904,631
State Subsidies 	859,868
Local Subsidies 	5,513
Earnings on Investments 	100,866
Total Non-Operating Revenues (Expenses) 	10,870,878
Change in Net Position 	1,717,359
Net Position - Beginning 	(1,385,922)
Net Position - Ending 	331,437	$
See notes to financial statements which are an integral part of this statement
19

-- 22 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Food
Service
Cash Flows from Operating Activities:
Receipts from Customers 	412,963	$
Payments to Supplier 	(6,107,719)
Payments to Employees for Services 	(3,040,404)
Net Cash Provided (Used) in Operating Activities 	(8,735,160)
Cash Flows from Non-Capital Financing Activities:
Federal Subsidies 	9,360,941
State Subsidies 	859,836
Local Subsidies 	5,513
Net Cash Provided (Used) by Non-Capital Financing Activities 	10,226,290
Cash Flows Provided (Used) in Capital and Related Financing Activities
Purchase of Capital Assets 	(1,044,430)
Cash Flows Provided (Used) by Investing Activities:
Interest on Investments 	100,866
Net Increase (Decrease) in Cash 	547,566
Cash - Beginning 	3,187,106
Cash - Ending 	3,734,672	$
Reconciliation of Operating Loss to Net Cash Used in Operating Activities:
Operating Gain (Loss) 	(9,153,519)	$
Adjustments to Reconcile Operating Gain (Loss) to Net Cash Used in Operating Activities:
Depreciation 	135,735
Donated USDA Commodities 	533,862
Pension Expense 	(201,039)
Other Postemployment Benefits 	(2,000)
Changes in Assets and Liabilities:
Inventories 	(58,231)
Other Receivables, Net 	(3,778)
Accounts Payable 	(903)
Due from/to Other Funds 	(5,050)
Unearned Revenue 	12,260
Other Current Liabilities 	7,503
Total Adjustments 	418,359
Net Cash Provided (Used) in Operating Activities 	(8,735,160)	$
Supplemental Disclosures:
Non-Cash Activities
Donated Foods 	546,122	$
See notes to financial statements which are an integral part of this statement
20

-- 23 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Statement of Changes in Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
Private Purpose
Trust Fund
Assets
Cash 	155,316	$
Other Recievable 	-
Total Assets 	155,316
Liabilities
Accounts Payable 	386
Total Liabilities 	386
Net Position
Held in Trust 	154,930
Total Liabilities and Net Position 	155,316	$
See notes to financial statements which are an integral part of this statement
22

-- 24 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Statement of Changes in Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
Private Purpose
Trust Fund
Additions
Local Sources 	32,585	$
Deductions
Non-Instructional Services 	32,389
Change in Net Position 	196
Net Position - Beginning 	154,734
Net Position - Ending 	154,930	$
See notes to financial statements which are an integral part of this statement
22

-- 25 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
23
NOTE 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
The major accounting principles and practices followed by the Hazleton Area School District (the
“District”) are summarized below:
A. Nature of Operations
The District was formed July 1, 1966 under the provisions of P.L. 564, the School District Reorganization
Act of 1963 of the Commonwealth of Pennsylvania. The District is administered by a nine-member Board
of Directors, each of which is elected by the general public, and operates a public school system that
encompasses sixteen municipalities in Luzerne, Carbon, and Schuylkill Counties. Funding for the District
is received from local, Commonwealth and federal sources and must comply with the requirements of
these funding source agencies.
The District assesses the taxpayers of these municipalities based upon taxing powers at its disposal. The
ability of the District’s taxpayers to pay their assessments is dependent upon economic and other factors
affecting the taxpayers.
B. 	Reporting Entity
The accompanying basic financial statements comply with the provisions of GASB Statement No. 61, The
Financial Reporting Entity: Omnibus, in that the financial statements include all organizations, activities
and functions for which the School District is financially accountable. Financial accountability is defined
as the appointment of a voting majority of a component unit’s board and either (1) the School District’s
ability to impose its will over a component unit, or (2) the possibility that the component unit will provide
a financial benefit or impose a financial burden on the School District. In addition, component units can be
other organizations for which the nature and significance of their relationship with the School District are
such that exclusion would cause the District’s financial statements to be misleading. This report presents
the activities of the Hazleton Area School District. The District is not a component unit of another
reporting entity nor does it have any component units.
C. Basis of Presentation
Government-Wide Financial Statements – The government-wide financial statements include the
statement of net position and the statement of activities. These financial statements report financial
information for the District as a whole, excluding fiduciary activities, on a full accrual, economic resource
basis. Individual funds are not displayed but the statements distinguish governmental activities, generally
supported by taxes and District general revenues, from business-type activities, generally financed in
whole or in part with fees charged to customers. The District’s General and Capital Projects funds are
classified as governmental activities. The District’s Food Service is classified as business-type activities.
The statement of activities reports the expenses of a given function or program offset by program revenues
directly connected with that function or program. A function is an assembly of similar activities and may
include portions of a fund or summarize more than one fund to capture the expenses and program revenues
associated with a distinct functional activity. Program revenues include (1) charges for services to users of
the District’s services, (2) operating grants and contributions that finance annual operating activities and
(3) capital grants and contributions that fund the acquisition, construction or rehabilitation of capital assets.
These revenues are subject to externally imposed restrictions to these program uses. Taxes and other
revenue sources not properly included with program revenues are reported as general revenues.

-- 26 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
24
NOTE 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES – CONTINUED
C. Basis of Presentation – Continued
Fund Financial Statements – The accounts of the District are organized on the basis of funds, each of
which constitutes a separate accounting entity. The operations of each fund are accounted for within a
separate set of self-balancing accounts that comprises its assets, liabilities, fund balances, revenues and
expenditures/expenses. Resources are allocated to and accounted for in individual funds based upon the
purpose for which they are to be spent. The District uses the following fund types:
Governmental Fund Types
Governmental funds are those through which most governmental functions of the District are financed.
The acquisition, use and balances of the District’s expendable financial resources and the related liabilities
are accounted for through governmental funds.
General Fund – The General Fund accounts for the general operations of the District and all
financial transactions not required to be accounted for in another fund. This fund is a major
governmental fund.
Capital Projects Fund – Capital project funds are used to account for and report financial resources
that are restricted, committed, or assigned to expenditure for capital outlays, including the
acquisition or construction of capital facilities and other capital assets. Capital project funds
exclude those types of capital-related outflows financed by proprietary funds or for assets that will
be held in trust for individuals, private organizations, or other governments.
The District has the following Capital Project Funds:
GOB 2023/2024A – Proceeds of $9,995,000 and $9,995,000 will be used for a guaranteed energy
savings project districtwide, and to pay the costs of issuance.
HAHS Roadway Project – The District is constructing a roadway behind the Hazleton Area High
School, to alleviate traffic congestion, as well as service the North Academic Campus proposed
construction.
Building/Property Acquisition – The District continues to search for suitable buildings/land to
acquire/renovate in an effort to better position the District to deal with the continued growth across
all aspects of the District.
Proprietary Fund Types
Proprietary funds account for operations of the District that are financed and operated in a manner similar
to those often found in the private sector. The following is a description of the proprietary fund of the
District:
Food Service – The Food Service Fund distinguishes between operating revenues and expenses
and non-operating items. Operating revenues consist of charges for food served. Operating
expenses consist mainly of food and food preparation costs, supplies and other direct costs. All
other revenues and expenses are reported as nonoperating. This fund is a major proprietary fund.

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
25
NOTE 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES – CONTINUED
C. Basis of Presentation – Continued
Fiduciary Fund Types
Fiduciary funds account for the assets held by the District as a trustee or agent for individuals, private
organizations and/or other governmental units. Expendable trust funds are accounted for in essentially the
same manner as governmental funds.
Private Purpose Trust Fund – The Private Purpose Trust Fund accounts for scholarship grants to
students of the District and for the expenditure of donations for the purchase of library books and
resources and accounts for escheated property.
D. Measurement Focus
Government-Wide Financial Statements – The government-wide financial statements are prepared using
the economic resources measurement focus. With this measurement focus, all assets and all liabilities
associated with the operation of the District are included on the statement of net position. The statement of
activities presents increases (i.e., revenues) and decreases (i.e., expenses) in the District’s net total assets.
Fund Financial Statements – Governmental funds are accounted for using the current financial resources
measurement focus. With this measurement focus, only current assets and current liabilities generally are
included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and
other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets.
Proprietary funds are also accounted for using the economic resources measurement focus.
E. 	Basis of Accounting
Basis of accounting refers to the point at which revenues or expenditures/expenses are recognized in the
accounts and reported in the financial statements. It relates to the timing of the measurements made
regardless of the measurement focus applied.
F. 	Accrual Basis
Government-wide financial statements and the proprietary and fiduciary fund type financial statements are
prepared using the accrual basis of accounting. For exchange transactions, revenues are recognized when
earned and expenses are recognized when incurred, that is when each party gives and receives essentially
equal value when the exchange takes place. Nonexchange transactions, in which the District receives value
without directly giving equal value in return, requires tax revenues to be recognized in the year levied
while grant revenue, entitlements and appropriations are recognized when granter eligibility requirements
are met.

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
26
NOTE 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES – CONTINUED
G. Modified Accrual Basis
Governmental funds use the modified accrual basis of accounting. Under the modified accrual basis,
revenues are recognized when susceptible to accrual (i.e., when they become both measurable and
available). “Measurable” means the amount of the transaction can be determined and “available” means
collectible within the current period or soon enough thereafter to be used to pay the liabilities of the current
period. The District considers property and other taxes as available if they are collected within 60 days
after year-end. A one-year availability period is used for revenue recognition for all other governmental
fund revenues. Expenditures, other than principal and interest on bonds payable, compensated absences
and claims and judgments, are recorded when the related fund liability is incurred. Principal and interest on
bonds payable, compensated absences and claims and judgments are recorded as fund liabilities when due
to unpaid.
The District reports unearned revenue on its fund financial statements. Unearned revenue arises when
potential revenues do not meet both the “measurable” and “available” criteria for recognition in the current
period. Unearned revenues may also arise when the District receives resources before it has a legal claim
to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In
subsequent periods, when both revenue recognition criteria are met, or when the District has a legal claim
to the resources, the liability for unearned revenue is removed and revenue is recognized.
The District applies all relevant GASB pronouncements and applicable Financial Accounting Standards
Board (FASB) pronouncements issued on or before November 30, 1989, unless they conflict with GASB
pronouncements. The District does not apply FASB pronouncements issued after November 30, 1989.
H. Allocation of Indirect Expenses
The District allocates certain building-related costs to the proprietary fund. It does not allocate any other
indirect costs.
I. 	Budgetary Data
The School Board approves, prior to the beginning of each fiscal year, an annual budget on the modified
accrual basis for the General Fund. This is the only fund for which a budget is required and for which taxes
may be levied. The Public School Code allows the School Board to authorize budget transfer amendments
during the year, but only during the last nine months of the fiscal year.
The District expenditures may not legally exceed the revised budget amounts by function and object.
Function is defined as a program area such as instructional services, and object is defined as the nature of
the expenditure such as salaries or supplies. Amendments require School Board approval.
All appropriations lapse at the end of each fiscal year.
J. 	Cash, Cash Equivalents, and Investments
Cash and cash equivalents consist of cash and liquid asset funds, which are carried at cost. Investments are
limited by the School Board’s investment policy. The District considers all investments purchased with an
original maturity of three months or less to be cash equivalents. If the original maturities of investments
exceed three months, they are classified as investments.

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
27
NOTE 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES – CONTINUED
K. Deferred Outflows/Inflows of Resources
Deferred outflows of resources, represents a consumption of net position that applies to a future period(s)
and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District
reported deferred outflows of resources and deferred inflows of resources related to pensions.
Deferred inflows of resources represent an acquisition of net position that applies to a future period(s) and
so will not be recognized as an inflow of resources (revenue) until that time. Unavailable revenue, reported
only in the Governmental Funds Balance Sheet, reports unavailable revenues from property taxes. This
amount will be deferred and recognized as an inflow of resources in the period that the amounts become
available.
L. 	Inventories
Inventories are valued at the lower of cost (first-in, first-out method) or market, except for donated
inventories which are valued at fair market value as determined by the U.S. Department of Agriculture at
the date of donation. Textbooks and instructional and custodial supplies are charged to expense upon
acquisition.
M. Capital Assets
Capital assets of governmental activities are those assets not specifically related to activities reported in the
proprietary fund. These assets generally result from expenditures in the governmental funds. These assets
are reported in the governmental activities column of the government-wide statement of net position but
are not reported in the fund financial statements. Capital assets utilized by the proprietary fund are reported
both in the business-type activity column of the government-wide statement of net position and in the
respective fund.
All capital assets are stated at cost or estimated cost, net of accumulated depreciation. Donated capital
assets are recorded at their fair market values as of the date received. The District maintains a
capitalization threshold of $20,000 for site and building improvements and a $10,000 threshold for all
other capital assets. The District does not possess any infrastructure. Improvements are capitalized; the
costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an
asset’s life are not.
All capital assets except land and construction in progress are depreciated. Improvements are depreciated
over the remaining useful lives of the related capital assets. Construction in progress costs are accumulated
until the project is complete and placed in service. At that time, the costs are transferred to the appropriate
asset class and depreciation begins. Depreciation is computed using the straight-line method over the
following estimated useful lives:
Governmental 	Business-Type
Activities 	Acitivity
Land Improvements 	20-50 years 	N/A
Building and Improvements 	20-50 years 	N/A
Furniture and Equipment 	5-20 years 	5 years

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
28
NOTE 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES – CONTINUED
N. Lease Assets
Lease assets are reported within the major class of the underlying asset in the District-wide financial
statements, and valued at the future minimum lease payments. Amortization is 9 years based on the
contract terms and/or estimated replacement of the assets.
O. Restricted Assets
Restricted assets are cash and cash equivalents whose use is limited by legal requirements such as a bond
indenture. Restricted assets are reported only in the District-wide financial statements.
P. 	Compensated Absences
Unused vacation and accumulated sick leave are obligated under a collective bargaining agreement for all
employees, excluding members of the administration. A provision is made annually in the budget for the
estimated cost of substitute personnel. Contractual provisions with teachers require payments of
accumulated unused sick leave days on retirement in the amount of $60 per day up to 100 days, $100 per
day for days above 100 to a maximum of 200, and $165 per day for 201 days and above for the 2024-2025
school year. Similar contractual provisions are in effect with nonprofessional employees except that the
payment is $30 per day up to 200 days, and $50 per day for 201 days and above for clerks, aides, and
cafeteria workers. Custodial, maintenance, and cleaning personnel receive $35 per day up to 99 days, $45
per day for 100 through 199, and $55 per day for 200 or more days. After ten years of employment, full-
time security officers and seasonal security officers receive $35 per day up to 99 days, $45 per day above
99 to a maximum of 199, and $55 per day for 200 days and above. Administrators, principals, and vice-
principals are paid the same as the teachers.
No liability is recorded for nonvesting accumulating rights to receive sick pay benefits. However, a
liability is recognized for the portion of accumulating sick leave benefits that is reasonably estimated to be
taken prior to retirement.
The District is liable for termination payments to retirees who retire under early retirement incentive plan
provision in certain contractual agreements. Payments to retirees are made annually under the provision of
the contract in effect when the employee retired to a maximum of $20,000. The expenditure for early
termination payments is recognized as paid, with a liability recorded for the amount in excess of the
maximum annual payment.
Q. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
R. Unearned Revenue
Unearned revenue represents amounts already received, but not earned, which will be included in revenue
of subsequent fiscal years. Unearned revenues consist of unearned federal and Commonwealth funds.

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
29
NOTE 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES – CONTINUED
S. 	Fund Balance
The District’s fund balance classifications are defined and described as follows:
Non-spendable – Represents fund balance amounts that cannot be spent because they are in a non-
spendable form or legally or contractually required to be maintained intact.
Restricted – Represents fund balance amounts that are limited by external parties, or by enabling
legislation.
Committed – Represents fund balance amounts that can only be used for specific purposes pursuant to
the constraints imposed by formal action of the Board of School Directors, the District’s highest level
of decision-making authority. Committed amounts cannot be used for any other purpose unless the
Board removes the constraints or changes the specified purpose through the same action it used to
commit the funds.
Assigned – Represented fund balance amounts that are constrained by the District’s intent to be used
for a specific purpose but are neither restricted nor committed. Through board policy, the Board has
delegated the authority to express intent to the District’s finance committee or board secretary/business
manager.
Unassigned – Represents fund balance amounts available for consumption that have not been restricted
in any manner.
The District has a board policy which prescribes fund balance guidelines. The District will strive to
maintain an unassigned general fund balance of not less than 3 percent and not more than 8 percent of the
budgeted expenditures for that year.
T. 	Eliminations and Internal Balances
Transactions and balances between governmental activities have been eliminated in the government-wide
financial statements. Residual amounts due between governmental and business-type activities are labeled
“internal balances” on the statement of net assets.
U. Restricted Net Assets
When both restricted and unrestricted resources are available for use, the District’s policy is to use
restricted resources first, and then unrestricted resources as needed.

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
30
NOTE 2 – DEPOSITS WITH FINANCIAL INSTITUTIONS
The District’s investment policy is in accordance with the Public School Code 1949, Section 440.1 which
requires monies to be invested in U.S. Treasury bills, short-term obligations of the U.S. government or its
agencies or instrumentalities, savings or time accounts, or share accounts of institutions insured by the
FDIC or FSLIC or NCUSIF to the extent such accounts are so insured and, for any amounts above the
insured maximum provided that approved collateral as provided by law therefore shall be pledged by the
depository. Obligations of the United States of America or any of its agencies or instrumentalities backed
by the full faith and credit of the United States of America, the Commonwealth of Pennsylvania or any of
its agencies or instrumentalities backed by the full faith and credit of the Commonwealth, or of any
political subdivision of the Commonwealth of Pennsylvania or any of its agencies or instrumentalities
backed by the full faith and credit of the political subdivision.
At June 30, 2025, the District’s cash and cash equivalents include deposits with local financial institutions
and the Pennsylvania School District Liquid Asset Fund (PSDLAF) $23,425,048 Pennsylvania Local
Government Investment Trust (PLGIT) $14,413, Pennsylvania INVEST (PA INVEST) $23,470,188 and
various petty cash balances $10,935 held throughout the District.
Credit Risk
The risk that an issuer or other counterparty to an investment will not fulfill its obligations is called credit
risk. The District does not maintain any significant investments, therefore is not exposed to this type of
risk. PLGIT, PSDLAF, and PA INVEST have received an AAA rating from Standards & Poor’s.
Custodial Credit Risk – Deposits
In the case of deposits, this is the risk that in the event of a bank failure, the government’s deposits may
not be returned to it. As of June 30, 2025, $77,211,677 of the District’s $77,962,174 bank balance is
uninsured and collateralized with securities held by the pledging bank’s trust department not in the
District’s name, $750,496 was insured by the FDIC and $46,909,649 is uninsured and uncollateralized. As
stated above the District also places funds with PSDLAF, PLGIT, and PA INVEST. Each member owns a
pro rata share of each of the fund’s underlying investments or deposits, which are held in the name of the
applicable fund. The underlying pool of securities for each of these funds is permitted in Section 440.1 of
the School Code. In order to minimize interest rate risks, each fund strives to maintain investment
maturities to keep the net asset values for participants at $1.00 per share.
NOTE 3 – TAXES RECEIVABLE
Real estate taxes are levied on July 18 for Schuylkill, Carbon, and Luzerne Counties, based on assessed
values established by the Luzerne, Carbon, and Schuylkill Counties Board of Assessments. Real property
in the School District was originally assessed at $4,710,345,960 for the 2024-2025 tax years. A tax rate of
13.238 mills-Luzerne County, 27.629 mills-Carbon County, and 38.917 mills-Schuylkill County was
established for fiscal year 2024-2025. Taxes are due on or before November 18 for Schuylkill, Carbon, and
Luzerne Counties. Payments prior to September 18 for Schuylkill, Carbon, and Luzerne Counties are
entitled to a 2% discount, while payments after November 18 for Schuylkill, Carbon, and Luzerne
Counties are subject to a 10% penalty. Taxes not paid by January 1 attach as an enforceable lien on
property.

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
31
NOTE 4 – DUE FROM OTHER GOVERNMENTS
Amounts which are due from other governments include $361,955 from various school districts for tuition
and early intervention services. $7,636,077 for grant programs due from the Commonwealth of
Pennsylvania’s Department of Education (“PDE”), as well as $3,768,178 in federal funds passed through
the PDE.
Amounts that are business-type activities due from other governments include $238,906 for federal and
state food subsidies.
NOTE 5 – CAPITAL ASSETS
Depreciation expense was charged to governmental activities as follows:
Instruction 	154,691	$
Instructional Student 	492,683
Student Activities 	93,568
Operation and Maintenance of Plant Services 	203,473
Unallocated 	7,938,473
Total Depreciation Expense 	8,882,888	$
BALANCE
07/01/2024 	ADDITIONS 	DELETIONS
BALANCE
06/30/2025
GOVERNMENTAL ACTIVITIES
Capital Assets, Not Being Depreciated
Land 	3,657,440	$ 	-	$ 	-	$ 	3,657,440	$
Construction in Progress 	15,700,030 	15,958,439 	(20,409,616) 	11,248,853
Total Capital Assets, Not Being Depreciated 	19,357,470 	15,958,439 	(20,409,616) 	14,906,293
Capital Assets, Being Depreciated
Land Improvements 	21,623,630 	8,568,402 	- 	30,192,032
Building and Improvements 	273,818,316 	12,538,944 	- 	286,357,260
Furniture and Equipment 	16,012,670 	937,032 	(8,111) 	16,941,591
Total Capital Assets, Being Depreciated 	311,454,616 	22,044,378 	(8,111) 	333,490,883
Less: Accumulated Depreciation
Land Improvements 	(12,795,527) 	(1,106,942) 	- 	(13,902,469)
Building and Improvements 	(156,896,562) 	(7,003,232) 	- 	(163,899,794)
Furniture and Equipment 	(7,963,367) 	(772,714) 	8,111 	(8,727,970)
Total Accumulated Depreciation 	(177,655,456) 	(8,882,888) 	8,111 	(186,530,233)
Total Capital Assets, Being Depreciated, Net 	133,799,160 	13,161,490 	- 	146,960,650
Governmental Activities Capital Assets, Net 	153,156,630	$ 	29,119,929	$ 	(20,409,616)	$ 	161,866,943	$
BUSINESS-TYPE ACTIVITIES
Furniture and Equipment 	3,477,399	$ 	1,044,430	$ 	-	$ 	4,521,829	$
Less: Accumulated Depreciation 	(2,117,569) 	(135,735) 	- 	(2,253,304)
Business-Type Activities Capital Assets, Net 	1,359,830	$ 	908,695	$ 	-	$ 	2,268,525	$

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
32
NOTE 6 – LONG-TERM DEBT
General Obligation Bonds
The District issues general obligation bonds to provide funds for acquisition and construction of major
capital facilities or to refund prior year bond issues. General obligation bonds are direct obligations and
pledge the full faith and credit of the District. Bonded debt payable at June 30, 2025 is comprised of the
following individual issues:
Qualified School Construction Bonds, Series A of 2010, $10,370,000 due in annual
principal installments ranging from $800,000 to $5.0 million through September 1, 2027,
interest rate is fixed at 5.00% 	6,720,000	$
General Obligation Bonds, Series of 2016B, $17,100,000 due in annual principal
installments ranging from $710,000 to $1,390,000 through March 1, 2033, interest rate is
variable from 2.50% to 4.00% 	9,605,000
General Obligation Bonds, Series of 2019, $5,630,000 due in annual principal
installments ranging from $250,000 to $375,000 through March 1, 2039, interest rate is
variable from 2.125% to 4.00% 	4,210,000
General Obligation Bonds, Series of 2019A, $7,535,000 due in annual principal
installments ranging from $530,000 to $665,000 through March 1, 2034, interest rate is
variable from 2.00% to 4.00% 	5,415,000
General Obligation Bonds, Series of 2020, $7,335,000 due in annual principal
installments ranging from $490,000 to $600,000 through March 1, 2035, interest rate is
variable from 2.00% to 3.00% 	5,455,000
General Obligation Bonds, Series of 2020A, $4,590,000 due in annual principal
installments ranging from $5,000 to $2,700,000 through March 1, 2039, interest rate is
variable from 1.25% to 4.00% 	4,570,000
General Obligation Bonds, Series of 2021A, $6,940,000 due in annual principal
installments ranging from $115,000 to $6,550,000 through March 1, 2034, interest rate is
variable from 1.00% to 1.50% 	6,940,000
General Obligation Bonds, Series of 2021B, $29,250,000 due in annual principal
installments ranging from $4,090,000 to $8,300,000 through March 1, 2035, interest rate is
variable from 1.229% to 1.63% 	20,625,000
General Obligation Bonds, Series of 2023, $9,995,000 due in annual principal
installments ranging from $5,000 to $3,190,000 through March 1, 2043, interest rate is
variable from 3.50% to 4.375% 	9,990,000
General Obligation Bonds, Series of 2024, $8,650,000 due in annual principal
installments ranging from $5,000 to $1,890,000 through March 1, 2039, interest rate is
fixed at 4.00% 	8,640,000
General Obligation Bonds, Series of 2024A, $9,995,000 due in annual principal
installments ranging from $5,000 to $865,000 through March 1, 2044, interest rate is
variable from 4.00% to 5.00% 	9,995,000
92,165,000	$

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
33
NOTE 6 – LONG-TERM DEBT – CONTINUED
General Obligation Bonds – Continued
In the 2010-2011 year, the District was awarded participation in the (A) Qualified School Construction
Bonds (“QSCB”) program, a federally subsidized loan. Under the program, the federal government
subsidizes 4.83% of the 5.00% interest due on the QSCB bonds. During 2025, the District paid $518,500
of interest on the bonds and received $474,368 from the federal government.
The following is an analysis of debt service requirements to maturity on these obligations at June 30, 2025:
During the year ended June 30, 2024, the District incurred $7,275,471 of bond interest expense.
The District defeased certain revenue and general obligation bonds by placing the proceeds of new bonds
in trust to provide for all future debt service payments on the defeased bonds. Accordingly, the trust assets
and liability for the defeased bonds are not included in the District’s financial statements.
The principal balance of defeased bonds outstanding as of June 30, 2025 is as follows:
• 	2004 General Obligation Bond 	$19,390,000
Year Ending June 30, 	Principal 	Interest 	Total Debt Service
2026 	11,585,000	$ 	3,024,554	$ 	14,609,554	$
2027 	11,765,000 	2,834,496 	14,599,496
2028 	11,930,000 	2,360,780 	14,290,780
2029 	9,240,000 	1,943,081 	11,183,081
2030 	3,250,000 	1,747,741 	4,997,741
2031-2035 	15,520,000 	7,354,919 	22,874,919
2036-2040 	16,445,000 	4,619,026 	21,064,026
2041-2044 	12,430,000 	1,081,370 	13,511,370
Total 	92,165,000	$ 	24,965,967	$ 	117,130,967	$

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
34
NOTE 7 – CHANGES IN LONG-TERM LIABILITIES
Beginning
Balance 	Additions 	Reductions 	Ending Balance
Due Within
One Year
Governmental Activities:
General Obligation Bonds
Series B of 1995 CIB 	5,049,892	$ 	215,108	$ 	(5,265,000)	$ 	-	$ 	-	$
Series A of 2010 	7,550,000 	- 	(830,000) 	6,720,000 	800,000
Series B of 2016 	10,705,000 	- 	(1,100,000) 	9,605,000 	1,145,000
Series of 2019 	4,455,000 	- 	(245,000) 	4,210,000 	250,000
Series A of 2019 	5,925,000 	- 	(510,000) 	5,415,000 	530,000
Series of 2020 	5,940,000 	- 	(485,000) 	5,455,000 	490,000
Series A of 2020 	4,575,000 	- 	(5,000) 	4,570,000 	5,000
Series A & B of 2021 	31,135,000 	- 	(3,570,000) 	27,565,000 	8,350,000
Series of 2023 	9,995,000 	- 	(5,000) 	9,990,000 	5,000
Series of 2024 	8,650,000 	- 	(10,000) 	8,640,000 	5,000
Series A of 2024 	- 	9,995,000 	- 	9,995,000 	-
Total General Obligation Bonds 	93,979,892 	10,210,108 	(12,025,000) 	92,165,000 	11,580,000
Bond Discount 	(286,284) 	- 	18,371 	(267,913) 	(18,371)
Bond Premium 	2,237,835 	12,499 	(267,536) 	1,982,798 	267,862
Total General Obligation Bonds, Net 	95,931,443 	10,222,607 	(12,274,165) 	93,879,885 	11,829,491
Net Pension Liability 	229,716,000 	- 	(7,712,000) 	222,004,000 	-
Compensated Absences 	6,991,014 	1,912,992 	(1,213,166) 	7,690,840 	1,301,217
Net OPEB Obligation 	16,389,000 	196,000 	- 	16,585,000 	-
Lease Liability 	513,283 	- 	(177,470) 	335,813 	187,745
Total Long-Term Liabilities 	349,540,739	$ 	12,331,599	$ 	(21,376,801)	$ 	340,495,538	$ 	13,318,453	$
Business-Type Activities:
Net Pension Liability 	7,307,000	$ 	-	$ 	(239,000)	$ 	7,068,000	$ 	-	$
Net OPEB Obligation 	556,000 	6,000 	- 	562,000 	-
Total Long-term Liabilities 	7,863,000	$ 	6,000	$ 	(239,000)	$ 	7,630,000	$ 	-	$

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
35
NOTE 8 – DEFERRED INFLOWS/OUTFLOWS OF RESOURCES, UNAVAILABLE AND
UNEARNED REVENUES
Government-Wide Statement of Net Position
At June 30, 2025, deferred inflows of resources consisted of the net difference between projected and
actual investment earnings of $3,555,000 and $5,288,000 related to the pension and OPEB liability,
respectively. Unearned revenue consisted of grants of $264,747.
At June 30, 2025, deferred outflows of resources consisted of changes in proportions, the difference
between employer 	contributions 	and proportionate 	share 	of 	total 	contributions 	and contributions
subsequent to the measurement date, $42,484,000 and $3,840,000 related to the pension OPEB liability,
respectively.
Food Service Fund
Unearned revenues represent food received in the District’s food service operations that is on hand at June
30, 2025. Such revenues will be recognized when the food commodities are used.
NOTE 9 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS – PSERS
The Health Insurance Premium Assistance Program (HIPAP) is a cost-sharing, multiple-employer,
employee defined benefit other postemployment benefits plan administered by PSERS.
Other Postemployment Benefits
For the purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows
of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the
Public School Employees’ Retirement System (PSERS) and additions to/deductions from PSERS’s
fiduciary net position have been determined on the same basis as they are reported by PSERS. For this
purpose, benefit payments are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
General Information About the Health Insurance Premium Assistance Program
Health Insurance Premium Assistance Program
The System provides Premium Assistance which, is a governmental cost sharing, multiple-employer other
postemployment benefit plan (OPEB) for all eligible retirees who qualify and elect to participate.
Employer contribution rates for Premium Assistance are established to provide reserves in the Health
Insurance Account that are sufficient for the payment of Premium Assistance benefits for each succeeding
year. Effective January 1, 2002 under the provisions of Act 9 of 2001, participating eligible retirees are
entitled to receive premium assistance payments equal to the lesser of $100 per month or their out-of-
pocket monthly health insurance premium. To receive premium assistance, eligible retirees must obtain
their health insurance through either their school employer or the PSERS’ Health Options Program. As of
June 30, 2024 there were no assumed future benefit increases to participating eligible retirees.
Premium Assistance Eligibility Criteria
Retirees of the System can participate in the Premium Assistance program if they satisfy the following
criteria:

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
36
NOTE 	9 	– 	POSTEMPLOYMENT 	BENEFITS 	OTHER 	THAN 	PENSIONS 	– 	PSERS 	–
CONTINUED
General Information About the Health Insurance Premium Assistance Program – Continued
Premium Assistance Eligibility Criteria – Continued
• 	Have 24 ½ or more years of service, or
• 	Are a disability retiree, or
• 	Have 15 or more years of service and retired after reaching superannuation age
For Class DC members to become eligible for premium assistance, they must satisfy the following criteria:
• 	Attain Medicare eligibility with 24 ½ or more eligibility points, or
• 	Have 15 or more eligibility points and terminated after age 67, and
• 	Have received all or part of their distributions.
Pension Plan Description
PSERS is a governmental cost-sharing multiple-employer defined benefit pension plan that provides
retirement benefits to public school employees of the Commonwealth of Pennsylvania. The members
eligible to participate in the System include all full-time public school employees, part-time hourly public
school employees who render at least 500 hours of service in the school year, and part-time per diem
public school employees who render at least 80 days of service in the school year in any of the reporting
entities in Pennsylvania. PSERS issues a publicly available financial report that can be obtained at
www.pa.gov/PSERS.
Benefits Provided
Participating eligible retirees are entitled to receive premium assistance payments equal to the lesser of
$100 per month or their out-of-pocket monthly health insurance premium. To receive premium assistance,
eligible retirees must obtain their health insurance through either their school employer or the PSERS’
Health Options Program
Employer Contributions
The school districts’ contractually required contribution rate for the fiscal year ended June 30, 2025 was
0.64% of covered payroll, actuarially determined as an amount that, when combined with employee
contributions, is expected to finance the costs of benefits earned by employees during the year, with an
additional amount to finance any unfunded accrued liability. Contributions to the OPEB plan from the
District were $594,000 for the year ended June 30, 2025.

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
37
NOTE 	9 	– 	POSTEMPLOYMENT 	BENEFITS 	OTHER 	THAN 	PENSIONS 	– 	PSERS 	–
CONTINUED
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to OPEB
At June 30, 2025, the District reported a liability of $9,701,000 for its proportionate share of the net OPEB
liability. The net OPEB liability was measured as of June 30, 2024, and the total OPEB liability used to
calculate the net OPEB liability was determined by rolling forward the System’s total OPEB liability as of
June 30, 2023 to June 30, 2024. The District’s proportion of the net OPEB liability was calculated utilizing
the employer’s one-year reported covered payroll as it relates to the total one-year reported covered
payroll. At June 30, 2025, the District’s proportion was 0.5461%, which was an increase of 0.0134% from
its proportion measured as of June 30, 2024.
For the year ended June 30, 2025, the District recognized OPEB expense of $467,000. At June 30, 2025,
the District reported deferred outflows of resources and deferred inflows of resources related to OPEB
from the following sources:
Governmental Activities:
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Difference between expected and actual experience 	36,000	$ 	89,000	$
Changes in assumptions 	547,000 	1,371,000
Net difference between projected and actual investment earnings 	10,000 	-
Changes in proportion 	635,000 	120,000
Difference between employer contributions and proportionate share of
total contributions 	828,000 	-
Contributions subsequent to the measurement date 	574,000 	-
2,630,000	$ 	1,580,000	$
Business-Type Activities:
Difference between expected and actual experience 	1,000	$ 	57,000	$
Changes in assumptions 	44,000 	110,000
Net difference between projected and actual investment earnings 	- 	-
Changes in proportion 	20,000 	4,000
Difference between employer contributions and proportionate share of
total contributions 	26,000 	-
Contributions subsequent to the measurement date 	20,000 	-
111,000	$ 	171,000	$
$594,000 reported as deferred outflows of resources related to OPEB resulting from District contributions
subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year
ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to OPEB will be recognized in OPEB expense as follows:

-- 40 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
38
NOTE 	9 	– 	POSTEMPLOYMENT 	BENEFITS 	OTHER 	THAN 	PENSIONS 	– 	PSERS 	–
CONTINUED
Year Ending
June 30:
Governmental
Activities
Business-Type
Activities
2026 	178,000	$ 	(4,000)	$
2027 	(311,000) 	(19,000)
2028 	(557,000) 	(27,000)
2029 	(468,000) 	(24,000)
2030 	1,634,000 	(6,000)
476,000	$ 	(80,000)	$
Actuarial Assumptions
The Total OPEB Liability as of June 30, 2024, was determined by rolling forward the System’s Total
OPEB Liability as of June 30, 2023 to June 30, 2024 using the following actuarial assumptions, applied to
all periods included in the measurement:
• 	Actuarial cost method – Entry Age Normal – level % of pay.
• 	Investment return – 4.21% - S&P 20 Year Municipal Bond Rate.
• 	Salary growth – Effective average of 4.50%, comprised of inflation of 2.50% and 2.00% for real
wage growth and for merit or seniority increases.
• 	Premium Assistance reimbursement is capped at $1,200 per year.
• 	Assumed Healthcare cost trends were applied to retirees with less than $1,200 in premium
assistance per year.
• 	Mortality rates, were based on a blend of 50% PubT-2010 and 50% PubG-2010 Retiree Tables for
Males and Females, adjusted to reflect PSERS’ experience and projected using a modified version
of the MP-2020 Improvement Scale.
• 	Participation rate:
• 	Eligible retirees will elect to participate Pre age 65 at 50%
• 	Eligible retirees will elect to participate Post age 65 at 70%
The actuarial assumptions used in the June 30, 2023 valuation were based on the results of an actuarial
experience study that was performed for the five year period ending June 30, 2020.
The following assumptions were used to determine the contribution rate:
• 	The results of the actuarial valuation as of June 30, 2022 determined the employer contribution
rate for fiscal year 2024.
• 	Cost Method: Amount necessary to assure solvency of Premium Assistance through the third fiscal
year after the valuation date.
• 	Asset valuation method: Market Value.
• 	Participation rate: The actual data for retirees benefiting under the Plan as of June 30, 2021 was
used in lieu of the 63% utilization assumption for eligible retirees.
• 	Mortality Tables for Males and Females, adjusted to reflect PSERS’ experience and projected
using a modified version of the MP-2015 Mortality Improvement Scale.

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
39
NOTE 	9 	– 	POSTEMPLOYMENT 	BENEFITS 	OTHER 	THAN 	PENSIONS 	– 	PSERS 	–
CONTINUED
Actuarial Assumptions – Continued
Investments consist primarily of short-term assets designed to protect the principal of the plan assets. The
expected rate of return on OPEB plan investments was determined using the OPEB asset allocation policy
and best estimates of geometric real rates of return for each asset class.
The OPEB plan’s policy in regard to the allocation of invested plan assets is established and may be
amended by the Board. Under the program, as defined in the retirement code employer contribution rates
for Premium Assistance are established to provide reserves in the Health Insurance Account that are
sufficient for the payment of Premium Assistance benefits for each succeeding year.
OPEB-Asset Class 	Target Allocation
Long-Term Expected
Real Rate of Return
Cash 	100.00% 	1.70%
100.00%
The above was the Board’s adopted asset allocation policy and best estimates of geometric real rates of
return for each major asset class as of June 30, 2024.
Discount Rate
The discount rate used to measure the Total OPEB Liability was 4.21%. Under the plan’s funding policy,
contributions are structured for short term funding of Premium Assistance. The funding policy sets
contribution rates necessary to assure solvency of Premium Assistance through the third fiscal year after
the actuarial valuation date. The Premium Assistance account is funded to establish reserves that are
sufficient for the payment of Premium Assistance benefits for each succeeding year. Due to the short-term
funding policy, the OPEB plan’s fiduciary net position was not projected to be sufficient to meet projected
future benefit payments, therefore the plan is considered a “pay-as-you-go” plan. A discount rate of 4.21%
which represents the S&P 20-year Municipal Bond Rate at June 30, 2024, was applied to all projected
benefit payments to measure the total OPEB liability.
Sensitivity of the System Net OPEB Liability to Change in Healthcare Cost Trend Rates
Healthcare cost trends were applied to retirees receiving less than $1,200 in annual Premium Assistance.
As of June 30, 2024, retirees Premium Assistance benefits are not subject to future healthcare cost
increases. The annual Premium Assistance reimbursement for qualifying retirees is capped at a maximum
of $1,200. As of June 30, 2024, 92,149 retirees were receiving the maximum amount allowed of $1,200
per year. As of June 30, 2024, 489 members were receiving less than the maximum amount allowed of
$1,200 per year. The actual number of retirees receiving less than the $1,200 per year cap is a small
percentage of the total population and has a minimal impact on Healthcare Cost Trends as depicted below.
The following presents the System net OPEB liability for June 30, 2024, calculated using current
Healthcare cost trends as well as what the System net OPEB liability would be if it health cost trends were
1-percentage point lower or 1-percentage point higher than the current rate:

-- 42 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
40
NOTE 	9 	– 	POSTEMPLOYMENT 	BENEFITS 	OTHER 	THAN 	PENSIONS 	– 	PSERS 	–
CONTINUED
Sensitivity of the System Net OPEB Liability to Change in Healthcare Cost Trend Rates - Continued
1% 	Current 	1%
Decrease 	Trend Rate 	Increase
System Net OPEB liability 	9,701,000	$ 	9,701,000	$ 	9,702,000	$
Sensitivity of the District’s Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability, calculated using the discount rate of 4.21%, as well as what
the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower
(3.21%) or 1-percentage-point higher (5.21%) than the current rate:
1% Decrease 	Discount Rate 	1% Increase
3.21% 	4.21% 	5.21%
School District's proportionate
share of the net OPEB liability 	10,959,000	$ 	9,701,000	$ 	8,648,000	$
OPEB Plan Fiduciary Net Position
Detailed information about PSERS’ fiduciary net position is available in PSERS Comprehensive Annual
Financial Report which can be found on the System’s website at www.pa.gov/PSERS.
NOTE 	10 	– 	POSTEMPLOYMENT 	BENEFITS 	OTHER 	THAN 	PENSIONS 	– 	SINGLE
EMPLOYER PLAN
Plan Description
The District is contractually obligated to provide health benefits to certain former employees. The District
maintains a single-employer defined benefit plan to provide certain postretirement healthcare benefits to
the employees made eligible as per the individual contract under which the employee retired. These
benefits are provided through the District’s self-insured medical plan. Contractually, payments of
insurance premiums for retirees are in three groups. The groups are as follows: a portion of the retirees are
required to pay the premiums for the coverage, others have a pool of monies available to them of which
monthly payments due are deducted, and another group has the entire premium paid by the District.
Because the Plan consists solely of the District’s contractual obligation to provide OPEB through the
payment of medical benefits on behalf of its eligible retirees, no stand-alone financial report is either
available or generated.

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
41
NOTE 	10 	– 	POSTEMPLOYMENT 	BENEFITS 	OTHER 	THAN 	PENSIONS 	– 	SINGLE
EMPLOYER PLAN - CONTINUED
Plan Membership
At June 30, 2025, plan membership consisted of the following:
Active plan participants 	1,443
Vested former participants 	15
Retired participants 	31
Total 	1,489
Funding Policy and Funding Status
Premiums under the Plan for post-employment healthcare benefits are funded in various ways. For those
employees whose benefits are funded by the retiree desiring coverage, the contribution rate ranges from
$682 for Single person coverage to $2,691 for family coverage. For the period ending June 30, 2025,
eligible members paid $245,182, which was used to offset the District’s outlays to providers. The District
contributed $125,161 to the Plan for related retirees. The retired plan member may elect to continue
coverage for themselves and their dependents until the retired plan member reaches Medicare age. The
plan is financed on a pay-as-you-go basis.
Assumptions
The following assumptions and actuarial methods and calculations were used:
Discount Rate – 4.29% based on S&P Municipal Bond 20-Year High Grade Rate Index at July 1, 2024.
Salary – An assumption for salary increases is used only for spreading contributions over future pay under
the entry age normal cost method. For this purpose, salary increases are composed of a 2.5% cost of living
adjustment, 1.5% real wage growth, and for teachers and administrators a merit increase which varies by
age from 2.75% to 0%.
Withdrawal – Rates of withdrawal are based on PSERS plan experience and vary by age, gender, years of
service and PSERS Pension Class. Sample rates for employees with more than 10 years of service are
shown below. Rates for new employees start at 25.93% for men and 27.46% for women and decrease with
age and service.
Age
Male
Rate
Female
Rate 	Age
Male
Rate
Female
Rate
25 	4.55% 	3.90% 	45 	1.41% 	1.60%
30 	4.55% 	3.90% 	50 	1.89% 	2.08%
35 	1.68% 	2.83% 	55 	3.63% 	3.66%
40 	1.42% 	2.67% 	60 	5.49% 	5.94%
Mortality – PubT-2010 headcount-weighted mortality table including rates for contingent survivors for
teachers. 	PubG-2010 headcount-weighted mortality table including rates for contingent survivors for all
other employees.

-- 44 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
42
NOTE 	10 	– 	POSTEMPLOYMENT 	BENEFITS 	OTHER 	THAN 	PENSIONS 	– 	SINGLE
EMPLOYER PLAN - CONTINUED
Assumptions – Continued
Incorporated into the tables are rates projected generationally using Scale MP-2021 to reflect mortality
improvement.
Disability – No disability was assumed.
Retirement – Assumed retirement rates are based on PSERS plan experience and vary by age, service and
gender.
Percent of Eligible Retirees Electing Coverage in Plan – 75% of teachers and administrators and 20% of
all other employees eligible to receive benefits are assumed to elect coverage. 20% of Vested Former
Members are assumed to elect coverage at age 62 or age on valuation date, if later. For members taking
the 2024-2025 early retirement incentive actual elections were used.
Percent Married at Retirement – 35% of retirees are assumed to be married and have a spouse covered
by the plan at retirement. Non-spouse dependents are deemed to be immaterial.
Spouse Age – Wives are assumed to be two years younger than their husbands.
Age 	Male 	Female 	Male 	Female 	Male 	Female
55 	14.5% 	14.5% 	25.0% 	16.0% 	16.3% 	19.5%
56 	14.5% 	14.5% 	25.0% 	20.0% 	16.3% 	19.5%
57 	14.5% 	15.0% 	28.0% 	28.0% 	16.3% 	19.5%
58 	14.5% 	15.0% 	28.0% 	30.0% 	16.3% 	19.5%
59 	21.6% 	20.7% 	28.0% 	30.0% 	16.3% 	19.5%
60 	14.5% 	15.0% 	29.0% 	31.0% 	16.3% 	19.5%
61 	29.0% 	29.0% 	29.0% 	31.0% 	16.3% 	19.5%
62 	29.0% 	29.0% 	36.0% 	31.0% 	16.3% 	19.5%
63 	29.0% 	29.0% 	21.0% 	20.0% 	16.3% 	19.5%
64 	29.0% 	29.0% 	22.0% 	25.0% 	16.3% 	19.5%
65 	29.0% 	29.0% 	23.0% 	28.0% 	16.3% 	19.5%
66 	29.0% 	29.0% 	23.0% 	27.0% 	16.3% 	19.5%
67 	29.0% 	29.0% 	20.0% 	23.0% 	16.3% 	19.5%
68 	29.0% 	29.0% 	20.0% 	22.0% 	16.3% 	19.5%
69 	29.0% 	29.0% 	20.0% 	23.0% 	16.3% 	19.5%
70 	29.0% 	29.0% 	20.0% 	23.0% 	16.3% 	19.5%
71-73 	29.0% 	29.0% 	20.0% 	20.0% 	16.3% 	19.5%
74-79 	29.0% 	29.0% 	25.0% 	25.0% 	16.3% 	19.5%
80+ 	100.0% 	100.0% 	100.0% 	100.0% 	100.0% 	100.0%

-- 45 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
43
NOTE 	10 	– 	POSTEMPLOYMENT 	BENEFITS 	OTHER 	THAN 	PENSIONS 	– 	SINGLE
EMPLOYER PLAN – CONTINUED
Assumptions – Continued
Per Capita Claims Cost – Making use of weighted averages for various plan designs, the per capita
claims cost for medical and prescription drug is based on the expected portion of the group’s overall cost
attributed to individuals in the specific age and gender brackets. Dental and vision costs are assumed to not
vary with age or gender. The resulting costs are as follows:
Age 	Male 	Female
45-49 	7,509	$ 	10,844	$
50-54 	9,945	$ 	12,256	$
55-59 	12,112	$ 	12,824	$
60-64 	15,806	$ 	14,732	$
Medical and Prescription Drug
Combined
For retirees, per capita claims costs were multiplied by a factor ranging from 0.91227 to 1.18199
depending on the medical plan elected.
Retiree Contributions – Retiree contributions are assumed to increase at the same rate as the Health Care
Cost Trend Rate.
Health Care Cost Trend Rate – 7.0% in 2024, with 0.5% decrease per year until 5.5% in 2027. Rates
gradually decrease from 5.4% in 2028 to 4.0% in 2075 and later based on the Society of Actuaries Long-
Run Medical Cost Trend Model.
Actuarial Value of Assets – Equal to the Market Value of Assets
Actuarial Cost Method – Entry Age Normal – Under the Entry Age Normal Cost Method, the Normal
Cost is the present value of benefits allocated to the year following the valuation date. Benefits are
allocated on a level basis over the earnings of an individual between the date of hire and the assumed
retirement age. The Accrued Liability as of the valuation date is the excess of the present value of future
benefits over the present value of future Normal Cost. The Unfunded Accrued Liability is the excess of the
Accrued Liability over the Actuarial Value of Assets. Actuarial gains and losses serve to reduce or
increase the Unfunded Accrued Liability.
Participant Data – Based on census information as of October 2024. Due to the timing of school district
turnover, the data is believed to be representative of the population for the 2024-2025 school year.

-- 46 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
44
NOTE 	10 	– 	POSTEMPLOYMENT 	BENEFITS 	OTHER 	THAN 	PENSIONS 	– 	SINGLE
EMPLOYER PLAN - CONTINUED
Changes in the Total OPEB Liability
Total OPEB Liability
Balance at July 1, 2024 	7,307,000	$
Service Cost 	370,054
Interest 	307,180
Changes of Benefit Terms 	80,850
Difference between Expected and
Actual Experience 	(153,394)
Changes of Assumptions 	(23,776)
Benefit Payments 	(441,914)
Balance at June 30, 2024 	7,446,000	$
Sensitivity of the Total OPEB Liability to Change in Healthcare Cost Trend Rates
The following presents the total OPEB liability, calculated using current Healthcare cost trends as well as
what the total OPEB liability would be if it health cost trends were 1-percentage point lower or 1-
percentage point higher than the current rate:
1%
Decrease
Current
Trend Rate
1%
Increase
Total OPEB Liability 	6,559,000	$ 	7,446,000	$ 	8,500,000	$
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability, calculated using the discount rate of 4.29%, as well as
what the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage point
lower (3.29%) or 1-percentage-point higher (5.29%) than the current rate:
1%
Decrease
3.29%
Current
Discount
Rate 4.29%
1%
Increase
5.29%
Total OPEB Liabilty 	8,093,000	$ 	7,446,000	$ 	6,838,000	$

-- 47 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
45
NOTE 	10 	– 	POSTEMPLOYMENT 	BENEFITS 	OTHER 	THAN 	PENSIONS 	– 	SINGLE
EMPLOYER PLAN - CONTINUED
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2025, the District recognition OPEB expense of $456,275. At June 30, 2025,
the District reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between expected and actual experience 	-	$ 	1,510,000	$
Changes in assumptions 	878,000 	2,198,000
Benefit payments subsequent to the measurement date 	332,000 	-
1,210,000	$ 	3,708,000	$
Resulting from District benefit payments subsequent to the measurement date, $332,000 was reported as
deferred outflows of resources related to OPEB and will be recognized as a reduction of the OPEB liability
in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred
inflows of resources related to OPEB will be recognized in OPEB income as follows:
Year Ending
June 30:
2025 	(302,000)	$
2026 	(302,000)
2027 	(302,000)
2028 	(302,000)
2029 	(302,000)
Thereafter 	(1,320,000)
(2,830,000)	$
NOTE 11 – PENSION PLAN
Summary of Significant Accounting Policies
Pensions – For purposes of measuring the net pension liability, deferred outflows of resources and
deferred inflows of resources related to pensions and pension expense, information about the fiduciary net
position of the Public School Employees' Retirement System (PSERS) and additions to/deductions from
PSERS's fiduciary net position have been determined on the same basis as they are reported by PSERS.
For this purpose, benefit payments (including refunds of employee contributions) are recognized when due
and payable in accordance with the benefit terms. Investments are reported at fair value.

-- 48 of 77 --

HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
46
NOTE 11 – PENSION PLAN – CONTINUED
General Information About the Pension Plan
Plan Description – PSERS is a governmental cost-sharing multi-employer defined benefit pension plan
that provides retirement benefits to public school employees of the Commonwealth of Pennsylvania. The
members eligible to participate in the System include all full-time public-school employees, part-time
hourly public school employees who render at least 500 hours of service in the school year, and part-time
per diem public school employees who render at least 80 days of service in the school year in any of the
reporting entities in Pennsylvania. PSERS issues a publicly available financial report that can be obtained
at www.pa.gov/PSERS.
Benefits Provided – PSERS provides retirement, disability, and death benefits. Members are eligible for
monthly retirement benefits upon reaching (a) age 62 with at least one year of credited service; (b) age 60
with 30 or more years of credited service; or (c) 35 or more years of service regardless of age. Act 120 of
2010 (Act 120) preserves the benefits of existing members and introduced benefit reductions for
individuals who become new members on or after July 1, 2011. Act 120 created two membership classes,
Membership Class T-E (Class T-E) and Membership Class T-F (Class T-F). To qualify for normal
retirement, Class T-E and Class T-F members must work until age 65 with a minimum of three years of
service or attain a total combination of age and service that is equal to or greater than 92 with a minimum
of 35 years of service.
Act 5 of 2017 (Act 5) introduces a hybrid benefit with tow membership classes and a separate defined
contribution plan for individuals who become new members on or after July 1, 2019. Act 5 created two
new hybrid membership classes, Membership Class T-G (Class T-G) and Membership Class T-H (Class T-
H) and the separate defined contribution membership class, Membership Class DC (Class DC). To qualify
for normal retirement, Class T-G and Class T-H members must work until age 67 with a minimum of 3
years of credited service. 	Class T-G may also qualify for normal retirement by attaining a total
combination of age and service that is equal to or greater than 97 with a minimum of 35 years of credited
service.
Benefits are generally equal to 1% or 2.5%, depending upon membership class, of the member's final
average salary (as defined in the Code) multiplied by the number of years of credited service. For members
whose membership started prior to July 1, 2011, after completion of five years of service, a member's right
to the defined benefits is vested and early retirement benefits may be elected. For Class T-E and Class T-F
members, the right to benefits is vested after ten years of service.
Participants are eligible for disability retirement benefits after completion of five years of credited service.
Such benefits are generally equal to 2% or 2.5%, depending upon membership class, of the member's final
average salary (as defined in the Code) multiplied by the number of years of credited service, but not less
than one-third of such salary nor greater than the benefit the member would have had at normal retirement
age. Members over normal retirement age may apply for disability benefits.
Death benefits are payable upon the death of an active member who has reached age 62 with at least one
year of credited service (age 65 with at least three years of credited service for Class T-E and Class T-F
members) or who has at least five years of credited service (ten years for Class T-E and Class T-F
members). Such benefits are actuarially equivalent to the benefit that would have been effective if the
member had retired on the day before death.

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
47
NOTE 11 – PENSION PLAN – CONTINUED
Contributions
Members Contributions
Membership
Class
Continuous Employment
Since
Defined Benefit
(DB) Contribution Rate
Defined Contribution
(DC) Rate 	Total Contribition Rate
T-C 	Prior to July 22, 1983 	5.25% 	N/A 5.25%
6.25%
T-C 	On or after July 22, 1983 	6.25% 	N/A 	6.25%
T-D 	Prior to July 22, 1983 	6.50% 	N/A 	6.50%
T-D 	On or after July 22, 1983 	7.50% 	N/A 	7.50%
T-E 	On or after July 1, 2011 	7.5% based with shared risk * 	N/A Prior to 7/1/21: 7.5%
After 7/1/21: 8.0%
T-F 	On or after July 1, 2011 	10.3% based with shared risk * 	N/A Prior to 7/1/21: 10.3%
After 7/1/21: 10.8%
T-G 	On or after July 1, 2019 	5.5% based with shared risk * 	2.75% Prior to 7/1/21: 8.25%
After 7/1/21: 9.00%
T-H 	On or after July 1, 2019 	4.5% based with shared risk * 	3.00% Prior to 7/1/21: 7.50%
After 7/1/21: 8.25%
DC 	On or after July 1, 2019 	N/A 	7.50% 	7.50%
*Shared Risk Program Summary
Membership
Class
Defined Benefit (DB)
Base Rate 	Shared Risk Increment 	Minimum 	Maximum
T-E 	7.50% 	+/- 0.50% 	5.50% 	9.50%
T-F 	10.30% 	+/- 0.50% 	8.30% 	12.30%
T-G 	5.50% 	+/- 0.75% 	2.50% 	8.50%
T-H 	4.50% 	+/- 0.75% 	1.50% 	7.50%
Employer Contribution
The District's contractually required contribution rate for the fiscal year ended June 30, 2025, was 32.92%
of covered payroll, actuarially determined as an amount that, when combined with employee contributions
is expected to finance the costs of benefits earned by employees during the year, with an additional amount
to finance any unfunded accrued liability. Contributions to the pension plan from the District were
$28,730,961 for the year ended June 30, 2025.
Pension Liabilities, Pension Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At June 30, 2025, the District reported a liability of $229,072,000 for its proportionate share of the net
pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability
used to calculate the net pension liability was determined by rolling forward the System's total pension
liability as of June 30, 2023 to June 30, 2024. The District's proportion of the net pension liability was

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
48
NOTE 11 – PENSION PLAN – CONTINUED
Pension Liabilities, Pension Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions – Continued
calculated utilizing the employer's one-year reported covered payroll as it relates to the total one-year
reported covered payroll. At June 30, 2025, the District's proportion was 0.5473%, which was a increase of
0.0145% from its proportion measured as of June 30, 2024.
For the year ended June 30, 2025, the District recognized pension expense of $24,567,000. At June 30,
2025, the District reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Governmental Activities:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between expected and actual experience 	-	$ 	3,460,039	$
Changes in assumptions 	- 	-
Net difference between projected and actual
investment earnings 	3,678,000 	-
Changes in proportions 	8,398,000 	-
Difference between employer contributions
and proportionate share of total contributions 	64,676 	94,961
Contributions subsequent to the measurement date 	30,343,324 	-
42,484,000	$ 	3,555,000	$
Business-Type Activities:
Difference between expected and actual experience 	-	$ 	141,961	$
Changes in assumptions 	- 	-
Net difference between projected and actual
investment earnings 	114,000 	-
Changes proportions 	260,000 	-
Difference between employer contributions
and proportionate share of total contributions 	2,000 	3,000
Contributions subsequent to the measurement date 	920,676 	-
1,296,676	$ 	144,961	$
$31,264,000 reported as deferred outflows of resources related to pensions resulting from District
contributions subsequent to the measurement date will be recognized as a reduction of the new pension
liability in the year ended June 30, 2025.

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
49
NOTE 11 – PENSION PLAN – CONTINUED
Pension Liabilities, Pension Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions – Continued
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension expense as follows:
Year Ending June 30:
Governmental Activities 	Business-Type Activities:
2026 	(960,940)	$ 	2026 	(30,000)	$
2027 	7,789,210 	2027 	241,000
2028 	1,895,406 	2028 	59,000
2029 	(138,000) 	2029 	(38,961)
8,585,676	$ 	231,039	$
Changes in Actuarial Assumptions
The total pension liability as of June 30, 2024, was determined by rolling forward the System’s total
pension liability as of the June 30, 2023 to June 30, 2024, using the following actuarial assumptions,
applied to all periods included in the measurement:
• 	Valuation Date – June 30, 2023
• 	Actuarial cost method – Entry Age Normal – level % of pay.
• 	Investment return – 7.00%, includes inflation at 2.50%.
• 	Salary growth – Effective average of 4.50%, comprised of inflation of 2.50% and 2.00% for real
wage growth and for merit or seniority increases.
• 	Mortality rates were based on a blend of 50% PubT-2010 and 50% PubG-2010 Retiree Tables for
Males and Females, adjusted to reflect PSERS’ experience and projected using a modified version
of the MP-2020 Improvement Scale.
• 	The discount rate used to measure the Total Pension Liability decreased from 7.00% as of June 30,
2023 and as of June 30, 2024.
• 	Demographic and economic assumptions approved by the Board for use effective with the June
30, 2021 actuarial valuation:
o 	Salary growth rate – decrease from 5.00% to 4.50%.
o 	Real wage growth and merit or seniority increases (components for salary growth) –
decreased from 2.75% and 2.25% to 2.50% and 2.00%, respectively.
o 	Mortality rates – Previously based on the RP-2014 Mortality Tables for Males and
Females, adjusted to reflect PSERS’ experience and projected using a modified version of
the MP-2015 Mortality Improvement Scale. Effective with the June 30, 2021 actuarial
valuation, mortality rates are based on a blend of 50% PubT-2010 and 50% PubG-2010
Retiree Tables for Males and Females, adjusted to reflect PSERS’ experience and
projected using a modified version of the MP-2020 Improvement Scale.
The actuarial assumptions used in the June 30, 2024 valuation were based on the results of an actuarial
experience study that was performed for the five year period ending June 30, 2020.

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
50
NOTE 11 – PENSION PLAN – CONTINUED
Changes in Actuarial Assumptions – Continued
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best-estimate ranges of expected future real rates of return (expected returns, net of plan
investment expense and inflation) are developed for each major asset class. These ranges are combined to
produce the long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation.
The pension plan’s policy in regard to the allocation of invested plan assets is established and may be
amended by the Board. Plan assets are managed with a long-term objective of achieving and maintaining a
fully funded status for the benefits provided through the pension.
Asset Class 	Target Allocation
Long-Term Expected
Real Rate of Return
Global public equity 	30.0% 	4.8%
Private equity 	12.0% 	6.7%
Fixed income 	33.5% 	3.9%
Commodities 	5.0% 	2.5%
Infrastructure 	10.0% 	6.4%
Real estate 	9.5% 	5.9%
100.0%
The above was the Board’s adopted asset allocation policy and best estimates of geometric real rates of
return for each major asset class as of June 30, 2024.
Discount Rate – The discount rate used to measure the total pension liability was 7.00%. The projection
of cash flows used to determine the discount rate assumed that contributions from plan members will be
made at the current contribution rate and that contributions from employers will be made at contractually
required rates, actuarially determined. Based on those assumptions, the plan’s fiduciary net position was
projected to be available to make all projected future benefit payments of current plan members. Therefore,
the long-term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the total pension liability.
Sensitivity of the School District’s Proportionate Share of the Net Pension Liability to Changes in
the Discount Rate – The following presents the net pension liability, calculated using the discount rate of
7.00%, as well as what the net pension liability would be if it were calculated using a discount rate that is
one percentage point lower (6.00%) or one percentage point higher (8.00%) than the current rate:

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
51
NOTE 11 – PENSION PLAN – CONTINUED
Sensitivity of the School District’s Proportionate Share of the Net Pension Liability to Changes in
the Discount Rate – Continued
1%
Decrease
6.00%
Current
Discount Rate
7.00%
1%
Increase
8.00%
School District's proportionate share
of the net pension liability 	$ 	301,758,000 	$ 	229,072,000 	$ 	167,694,000
Pension Plan Fiduciary Net Position – Detailed information about PSERS’s fiduciary net position is
available in the PSERS Comprehensive Annual Financial Report which can be found on the System’s
website at www.pa.gov/PSERS.
NOTE 12 – LEASE ASSETS AND LEASE LIABILITIES
Lease Asset
A summary of the lease asset activity during the year ended June 30, 2024 is as follows:
Balance
July 1, 2024 	Additions
Balance
June 30, 2025
Copier Equipment 	$ 	1,341,028 	$ 	- 	$ 	1,341,028
Less: Accumulated Amortization 	868,771 	149,003 	1,017,774
Total Lease Assets, Net 	472,257	$ 	(149,003)	$ 	323,254	$
Amortization expense is unallocated on the Statement of Activities.
Lease Liabilities
Lease agreement activity during the year ended June 30, 2025, is as follows:
Description 	Date
Payment
Term
Payment
Amount
Interest
Rate
Total Lease
Liability
Balance
June 30, 2025
Copier Equipment 	9/1/2018 	108 Months 	16,299	$ 	2.40% 	1,341,028	$ 	335,813	$
The copier equipment was leased for the District with the terms noted above. This lease was renewed
during September of 2022 for an additional five-year term. The District will not acquire the equipment at
the end of the five years.
Annual requirements to amortize long-term obligations and related interest are as follows:
Year Ending 	Principal 	Interest 	Total
2026 	160,225	$ 	35,365	$ 	195,590	$
2027 	164,781 	30,809 	195,590
2028 	10,807 	98 	10,905
Total 	335,813	$ 	66,272	$ 	402,085	$

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
52
NOTE 13 – INTERNAL BALANCES/INTER-FUND BALANCES AND TRANSFERS
The composition of interfund balances as of June 30, 2025, is as follows:
Receivable Fund 	Payable Fund 	Amount
Food Service Fund 	General Fund 	443,973	$
The amounts between the funds are interfund borrowings to pay for operations.
NOTE 14 – COMMITMENTS AND CONTINGENCIES
Risk Management
The District is exposed to various risks of loss related to torts, damage to and destruction of assets, errors
and omissions, injuries to employees and natural disasters. The District has purchased commercial
insurance for all these risks. There have not been significant reductions in insurance coverage for any
major categories of risk compared to coverage in the prior year. In addition, the amounts of settlements
have not exceeded insurance coverages in any of the past three fiscal years.
Self-Insured Medical Plan
Effective January 1, 2002, the District self-insured for medical benefits provided to its employees and
retirees. Highmark (the “administrator”) will administer the plans for the participants who will use the
current PPO plan utilizing the EHP, NEPA and Highmark networks.
The District purchased specific stop-loss insurance coverage for claims in excess of $275,000 per
participant. There were four claims in excess of the stop-loss insurance coverage for the year ended June
30, 2025.
For the year ended June 30, 2025, the District recognized approximately $21,303,000 in self-insured
medical expenses, including administrative and stop-loss insurance expenditures.
Litigation
The District is the defendant in a number of lawsuits arising principally in the normal course of operation.
The major portion of these lawsuits involves employees or former employees who have filed claims and it
does not appear that these claims will have a materially adverse effect on the financial statements. No
provision for loss has been recorded.
Grant Programs
The District participates in numerous state and federal grant programs, which are governed by various
rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to
audit and adjustment by the grantor agencies, therefore, to the extent that the District has not complied
with the rules and regulations governing the grants, refunds of any money received may be required and
the collectability of any receivable at June 30, 2024 may be impaired. In the opinion of the District, there
are no significant contingent liabilities relating to compliance with the rules and regulations governing the
respective grants; therefore, no provision has been recorded in the accompanying combined financial
statements for such contingencies.

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HAZLETON AREA SCHOOL DISTRICT
Notes to Financial Statements
For the Year Ended June 30, 2025
53
NOTE 14 – COMMITMENTS AND CONTINGENCIES – CONTINUED
Other Matters
In June 1996, the Commonwealth of Pennsylvania notified the District that their Area Vocational-
Technical School (“AVTS”) should be submitting separate financial reports and subsidy forms effective
for 	the 	fiscal 	year 	1996-1997. 	The 	Commonwealth 	states 	that 	the 	AVTS 	is 	approved 	by 	the
Commonwealth as a separate financial entity with its own unique administrative unit number and it
receives some subsidy payments directly from the Commonwealth. The District asserts that the AVTS and
the District are one entity and has been in contact with their legal counsel concerning this matter. As of the
date of this report, the Commonwealth has not formally contacted the District concerning the final
outcome of this matter.
NOTE 15 – FUND BALANCE ALLOCATIONS
Nonspendable Fund Balance
The General Fund had $35,981, in nonspendable fund balance at June 30, 2025, comprised of inventories
on hand and prepaid expenses at year-end.
Committed Fund Balance
The governing body (Board of School Directors) has committed, of the General Fund’s year end fund
balance for the following purposes: health insurance costs $1,000,000 and $44,548,563 for capital projects.
Assigned Fund Balance
The General Fund has $500,000 assigned for future retirement rate increases, and $343,359 of Student
Sponsored Activity funds.
NOTE 16 – EXCESS OF EXPENDITURES OVER APPROPRIATIONS
For the year ended June 30, 2025, expenditures exceeded appropriations in the following General Fund
department levels (the legal level of budgetary control):
General Fund
Non-Instructional Services 	1,627,817	$
NOTE 17 – RELATED PARTY TRANSACTIONS
The School District currently uses a service for collection of delinquent taxes. One member of the School
Board of Education is employed by the same service. All transactions are at arm’s length, and said member
abstains from all votes pertaining to the service.
NOTE 18 – SUBSEQUENT EVENT
In December 2025, the District issued $10,000,000 of General Obligation Bonds, Series of 2025. 	The
proceeds of the Bonds will be used to fund various energy savings capital projects, additional capital
projects throughout the District and to pay certain costs and expenses related to the issuance of the Bonds.
The District is not aware of any other events or transactions that occurred subsequent to the Statement of
Net Assets date but prior to November 30, 2025 that would require recognition or disclosure in its financial
statements.

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HAZLETON AREA SCHOOL DISTRICT
JUNE 30, 2025
Required
Supplementary
Information

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HAZLETON AREA SCHOOL DISTRICT
Required Supplementary Information
For the Year Ended June 30, 2025
2025 	2024 	2023 	2022 	2021 	2020 	2019 	2018
TOTAL OPEB LIABILITY
Service Cost 	370,054	$ 	345,672	$ 	554,406	$ 	557,541	$ 	444,166	$ 	447,798	$ 	497,426	$ 	479,458	$
Interest 	307,180 	289,579 	228,893 	186,672 	245,831 	217,351 	280,519 	221,604
Changes of Benefit Terms 	80,850 	- 	- 	- 	1,180,850 	- 	- 	-
Differences Between Expected and Actual Experience 	(153,394) 	- 	(666,968) 	- 	(44,156) 	- 	(1,765,264) 	-
Changes of Assumptions 	(23,776) 	84,250 	(2,333,916) 	(314,698) 	1,116,290 	(216,516) 	(2,196) 	229,950
Benefit Payments 	(441,933) 	(434,672) 	(534,353) 	(292,159) 	(389,155) 	(461,361) 	(828,191) 	(955,321)
NET CHANGE IN TOTAL OPEB LIABILITY 	138,981 	284,829 	(2,751,938) 	137,356 	2,553,826 	(12,728) 	(1,817,706) 	(24,309)
TOTAL OPEB LIABILITY, BEGINNING 	7,307,117 	7,022,288 	9,774,226 	9,636,870 	7,083,044 	7,095,772 	8,913,478 	8,937,787
TOTAL OPEB LIABILITY, ENDING 	7,446,098	$ 	7,307,117	$ 	7,022,288	$ 	9,774,226	$ 	9,636,870	$ 	7,083,044	$ 	7,095,772	$ 	8,913,478	$
COVERED-EMPLOYEE PAYROLL 	88,616,937	$ 	73,089,777	$ 	73,089,777	$ 	69,932,738	$ 	69,932,738	$ 	66,176,160	$ 	66,176,160	$ 	61,122,352	$
TOTAL OPEB LIABILTY AS A PERCENTAGE
OF COVERED-EMPLOYEE PAYROLL 	8.40% 	10.00% 	9.61% 	13.98% 	13.78% 	10.70% 	10.72% 	14.58%
NOTES TO SCHEDULE
No assets are accumulated in a trust to pay benefits related to this plan.
The District's covered employee payroll noted above is as of a measurement date of the net OPEB liability (June 30, 2025, 2024, 2023, 2022, 2021, 2020, 2019, and 2018).
This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled,
information for only those years available is shown.
See Notes to Financial Statements
Schedule of Changes in the Net OPEB Liability and Related Ratios
District Other Post Employment Benefits Plan
55

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HAZLETON AREA SCHOOL DISTRICT
Required Supplementary Information
For the Year Ended June 30, 2025
2025 	2024 	2023 	2022 	2021 	2020 	2019 	2018
School District's Proportion of the Net OPEB Liability 	0.5461% 	0.5327% 	0.5251% 	0.5041% 	0.5179% 	0.5093% 	0.4917% 	0.5118%
School District's Proportionate Share of the Net OPEB Liability 	9,701,000	$ 	9,638,000	$ 	9,666,000	$ 	11,948,000	$ 	11,190,000	$ 	10,832,000	$ 	10,252,000	$ 	11,456,000	$
School District's Covered-Employee Payroll 	86,690,748	$ 	81,609,070	$ 	77,209,756	$ 	71,463,535	$ 	72,691,585	$ 	70,233,738	$ 	66,220,816	$ 	68,139,541	$
School District's Proportionate Share of the Net OPEB Liability
As a Percentage of its Covered-Employee Payroll 	11.19% 	11.81% 	12.52% 	16.72% 	15.39% 	15.42% 	15.48% 	16.81%
The Plan's Fiduciary Net Position as a Percentage of the Total
OPEB Liability 	7.13% 	7.22% 	6.86% 	5.30% 	5.69% 	5.56% 	5.56% 	5.73%
NOTES TO SCHEDULE
The District's covered employee payroll noted above is as of a measurement date of the net OPEB liability (June 30, 2025, 2024, 2023, 2022, 2021, 2020, 2019, and 2018).
This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled,
information for only those years available is shown.
See Notes to Financial Statements
Health Insurance Premium Assistance Plan
Schedule of the Dsitrict's Proportionate Share of the Net OPEB Liability
Last 10 Years
56

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HAZLETON AREA SCHOOL DISTRICT
Required Supplementry Information
For the Year Ended June 30, 2025
2025 	2024 	2023 	2022 	2021 	2020 	2019 	2018
Contractually Required Contribution 	556,000	$ 	609,000	$ 	613,000	$ 	587,000	$ 	610,000	$ 	584,000	$ 	549,000	$ 	566,558	$
Contributions in Relation to the Contractually Required
Contribution 	556,000 	609,000 	613,000 	587,000 	610,000 	584,000 	549,000 	566,558
CONTRIBUTION EXCESS (DEFICIENCY) 	-	$ 	-	$ 	-	$ 	-	$ 	-	$ 	-	$ 	-	$ 	-	$
School District's Covered-Employee Payroll 	86,690,748	$ 	81,609,070	$ 	77,209,756	$ 	71,463,535	$ 	72,691,585	$ 	70,233,738	$ 	66,220,816	$ 	68,139,541	$
Contributions as a Percentage of Covered-Employee Payroll 	0.64% 	0.75% 	0.79% 	0.82% 	0.84% 	0.83% 	0.83% 	0.83%
NOTES TO SCHEDULE
The District's covered employee payroll noted above is as of a measurement date of the net OPEB liability (June 30, 2025, 2024, 2023, 2022, 2021, 2020, 2019, and 2018).
This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled,
information for only those years available is shown.
See Notes to Financial Statements
Schedule of the District's OPEB Contributions
Health Insurance Premium Assistance Plan
Schedule of the District Contributions - Last 10 Years
57

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HAZLETON AREA SCHOOL DISTRICT
Required Supplementary Information
For the Year Ended June 30, 2025
2025 	2024 	2023 	2022 	2021 	2020 	2019 	2018
School District's Proportion of the Net Pension Liability (Asset) 	0.5473% 	0.5328% 	0.5252% 	0.5054% 	0.5179% 	0.5093% 	0.4917% 	0.5118%
School District's Proportionate Share of the Net Pension Liability (Asset) 	229,072,000	$ 	237,023,000	$ 	233,497,000	$ 	207,501,000	$ 	255,107,000	$ 	238,264,000	$ 	236,040,000	$ 	252,770,000	$
School District's Covered-Employee Payroll 	86,690,748	$ 	81,609,070	$ 	77,209,756	$ 	71,463,535	$ 	72,691,585	$ 	70,233,738	$ 	66,220,816	$ 	68,139,541	$
School District's Proportionate Share of the Net Pension Liability (Asset)
As a Percentage of its Covered-Employee Payroll 	264.24% 	290.44% 	302.42% 	290.36% 	350.94% 	339.24% 	356.44% 	370.96%
The Plan's Fiduciary Net Position as a Percentage of the Total Pension
Liability 	64.63% 	61.85% 	61.34% 	63.67% 	54.32% 	55.66% 	54.00% 	51.84%
NOTES TO SCHEDULE
The District's covered employee payroll noted above is as of a measurement date of the net pension liability (June 30, 2025, 2024, 2023, 2022, 2021, 2020, 2019, and 2018).
This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, information for only
those years available is shown.
See Notes to Financial Statements
Schedule of the District's Proportionatre Share of the Net Pension Liability - Last 10 Years
58

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HAZLETON AREA SCHOOL DISTRICT
Required Supplementary Information
For the Year Ended June 30, 2025
2025 	2024 	2023 	2022 	2021 	2020 	2019 	2018
Contractually Required Contribution 	31,264,000	$ 	28,609,000	$ 	27,954,000	$ 	26,267,000	$ 	24,037,000	$ 	24,310,000	$ 	20,864,000	$ 	21,112,000	$
Contributions in Relation to the Contractually Required
Contribution 	31,264,000 	28,609,000 	27,954,000 	26,267,000 	24,037,000 	24,310,000 	20,864,000 	21,112,000
CONTRIBUTION EXCESS (DEFICIENCY) 	-	$ 	-	$ 	-	$ 	-	$ 	-	$ 	-	$ 	-	$ 	-	$
School District's Covered-Employee Payroll 	86,690,748	$ 	81,609,070	$ 	77,209,756	$ 	71,463,535	$ 	72,691,585	$ 	70,233,738	$ 	66,220,816	$ 	68,139,541	$
Contributions as a Percentage of Covered-Employee Payroll 	36.06% 	35.06% 	36.21% 	36.76% 	33.07% 	34.61% 	31.51% 	30.98%
NOTES TO SCHEDULE
The District's covered employee payroll noted above is as of a measurement date of the net pension liability (June 30, 2025, 2024, 2023, 2022, 2021, 2020, 2019, and 2018).
This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, information for only
those years available is shown.
See Notes to Financial Statements
Schedule of the District's Pension Contributions - Last 10 Years
59

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HAZLETON AREA SCHOOL DISTRICT
JUNE 30, 2025
Budget to Actual
Schedule

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HAZLETON AREA SCHOOL DISTRICT
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual - General Fund
For the Year Ended June 30, 2025
VARIANCE WITH
FINAL BUDGET -
ACTUAL 	POSITIVE
ORIGINAL 	FINAL 	AMOUNTS 	(NEGATIVE)
REVENUES:
Local Sources 	88,995,821	$ 	88,995,821	$ 	96,761,918	$ 	7,766,097	$
State Sources 	138,475,702 	138,475,702 	142,508,113 	4,032,411
Federal Sources 	17,347,993 	17,347,993 	16,852,808 	(495,185)
Total Revenues 	244,819,516 	244,819,516 	256,122,839 	11,303,323
EXPENDITURES:
Current:
Instruction 	143,443,344 	143,443,344 	139,444,584 	3,998,760
Support Services 	64,415,100 	64,415,100 	61,072,746 	3,342,354
Non-Instructional Services 	3,039,944 	3,039,944 	4,667,761 	(1,627,817)
Capital Outlay 	14,655,000 	14,655,000 	6,382,255 	8,272,745
Total Expenditures 	225,553,388 	225,553,388 	211,567,346 	13,986,042
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 	19,266,128 	19,266,128 	44,555,493 	25,289,365
OTHER FINANCING SOURCES (USES):
Other Financing Uses Not Listed 	- 	- 	(105,162) 	(105,162)
Debt Service 	(16,486,005) 	(16,486,005) 	(15,029,445) 	1,456,560
Insurance Recoveries 	- 	- 	1,600 	1,600
Sale of Fixed Assets 	15,000 	15,000 	2,212 	(12,788)
Fund Transfers 	(2,795,123) 	(2,795,123) 	(17,997,600) 	(15,202,477)
Total Other Financing
Sources, Net 	(19,266,128) 	(19,266,128) 	(33,128,395) 	(13,862,267)
NET CHANGE IN FUND BALANCE 	-	$ 	-	$ 	11,427,098 	11,427,098	$
FUND BALANCE - BEGINNING 	54,033,572
FUND BALANCE - ENDING 	65,460,670	$
See Notes to Financial Statements
61

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HAZLETON AREA SCHOOL DISTRICT
JUNE 30, 2025
Combining Statements
For the Year Ended June 30, 2025

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HAZLETON AREA SCHOOL DISTRICT
Combining Balance Sheet - Capital Project Fund
June 30, 2025
General
Obligation
Bonds
2023/2024A
HAHS
Roadway
Project
Building /
Property
Acquisition
Total
Capital
Project
Fund
ASSETS:
Cash and Cash Equivalents 	6,617,001	$ 	-	$ 	-	$ 	6,617,001	$
Due from Other Funds 	1,897,600 	4,024,561 	12,000,000 	17,922,161
Total Assets 	8,514,601	$ 	4,024,561	$ 	12,000,000	$ 	24,539,162	$
LIABILITIES AND FUND BALANCES:
Accounts Payable 	431,620	$ 	-	$ 	-	$ 	431,620	$
Total Liabilities 	431,620 	- 	- 	431,620
FUND BALANCES:
Restricted for Capital Projects 	8,082,981 	4,024,561 	12,000,000 	24,107,542
Total Liabilities and Fund Balances 	8,514,601	$ 	4,024,561	$ 	12,000,000	$ 	24,539,162	$
63

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HAZLETON AREA SCHOOL DISTRICT
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balance - Capital Project Fund
For the Year Ended June 30, 2025
General
Obligation
Bonds
2023/2024A
HAHS
Roadway
Project
Building /
Property
Acquisition
Total
Capital
Project
Fund
Revenues:
Local Sources 	343,806	$ 	-	$ 	-	$ 	343,806	$
Expenditures:
Support Services 	173,494 	- 	- 	173,494
Capital Outlay 	9,233,916 	75,439 	- 	9,309,355
Total Expenditures 	9,407,410 	75,439 	- 	9,482,849
Deficiency of Revenues Under Expenditures 	(9,063,604) 	(75,439) 	- 	(9,139,043)
Other Financing Sources:
Bond Proceeds 	9,995,000 	- 	- 	9,995,000
Bond Premium 	12,499
Transfers 	1,897,600 	4,100,000 	12,000,000 	17,997,600
Total Other Financing Sourcres 	11,905,099 	4,100,000 	12,000,000 	28,005,099
Excess (Deficiency) of Revenues and Other
Financing Sources Over (Under)
Expenditures and Other Financing Uses 	2,841,495 	4,024,561 	12,000,000 	18,866,056
Fund Balance - Beginning 	5,241,486 	- 	- 	5,241,486
Fund Balance - Ending 	8,082,981	$ 	4,024,561	$ 	12,000,000	$ 	24,107,542	$
64

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REPORT OF INDEPENDENT PUBLIC ACCOUNTANT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Members of the School Board
Hazleton Area School District
Hazle Township, Pennsylvania
We have audited, in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of Hazleton Area
School District (the District) as of and for the year ended June 30, 2025, and the related notes to the financial
statements, which collectively comprise the District’s basic financial statements, and have issued our report
thereon dated December 12, 2025.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’s internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the District’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity’s
financial statements will not be prevented or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may
exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies
in internal control over financial reporting that we consider to be material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The

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66
results of our tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Shamokin, Pennsylvania
December 12, 2025

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REPORT OF INDEPENDENT PUBLIC ACCOUNTANT ON COMPLIANCE FOR EACH
MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH UNIFORM GUIDANCE
Members of the School Board
Hazleton Area School District
Hazle Township, Pennsylvania
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited Hazleton Area School District’s (the District) compliance with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that
could have a direct and material effect on each of the Hazleton Area School District’s (the “District”) major
federal programs for the year ended June 30, 2025. The District’s major federal programs are identified in
the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
In our opinion, the District complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for the
year ended June 30, 2025.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S.
Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and
the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance
section of our report.
We are required to be independent of District and to meet our other ethical responsibilities, in accordance
with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program.
Our audit does not provide a legal determination of District’s compliance with the compliance requirements
referred to above.

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68
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to District’s
federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion
on the District’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not
absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS,
Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance
when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Noncompliance with the compliance requirements referred to above is
considered material, if there is a substantial likelihood that, individually or in the aggregate, it would
influence the judgment made by a reasonable user of the report on compliance about the District’s
compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
• 	Exercise professional judgment and maintain professional skepticism throughout the audit.
• 	Identify and assess the risks of material noncompliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on a
test basis, evidence regarding the District’s compliance with the compliance requirements referred
to above and performing such other procedures as we considered necessary in the circumstances.
• 	Obtain an understanding of the District’s internal control over compliance relevant to the audit in
order to design audit procedures that are appropriate in the circumstances and to test and report on
internal control over compliance in accordance with the Uniform Guidance, but not for the purpose
of expressing an opinion on the effectiveness of the District’s internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal
control over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct noncompliance with a type of compliance requirement of a federal
program on a timely basis. A material weakness in internal control over compliance is a deficiency, or
combination of deficiencies in internal control over compliance, such that there is a reasonable possibility
that material noncompliance with a type of compliance requirement of a federal program will not be
prevented, or detected and corrected on a timely basis.

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69
A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies,
in internal control over compliance with a type of compliance requirement of a federal program that is less
severe than a material weakness in internal control over compliance, yet important enough to merit attention
by those charged with governance. Our consideration of internal control over compliance was for the limited
purpose described in in the Auditor’s Responsibilities for the Audit of Compliance section above and was
not designed to identify all deficiencies in internal control over compliance that might be material
weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during
our audit we did not identify any deficiencies in internal control over compliance that we consider to be
material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal
control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control
over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
Shamokin, Pennsylvania
December 12, 2025

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HAZLETON AREA SCHOOL DISTRICT
Schedule of Expenditures of Federal and Certain State Awards
For the Year Ended June 30, 2025
Pass 	Grant 	Accrued 	Accrued
Through 	Period 	Program or 	(Deferred) 	(Deferred)
Source 	Grantor's 	Beginning\ 	Award 	Total 	Revenue At 	Revenue 	Federal 	Revenue At
Grantor/Program Title 	Code 	Number 	Ending Date 	Amount 	Received 	July 1, 2024 	Recognized 	Expenditures 	June 30, 2025
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Passed Through PA Department of Public Welfare
Medical Assistance Program 	I 	93.778 	N/A 	N/A 	N/A 	177,823	$ 	(317,835)	$ 	230,912	$ 	230,912	$ 	(264,747)	$
COVID-19 Public Health Workforce 	I 	93.354 	160-230028 	07/01/22-06/30/24 	181,339 	181,339 	37,779 	- 	- 	-
TOTAL U.S. DEPARTMENT OF
HEALTH AND HUMAN SERVICES 	181,339 	359,162 	(280,056) 	230,912 	230,912 	(264,747)
U.S. DEPARTMENT OF TREASURY
Passed Through PA Commission on Crime and Delinquency
Coronavirus state and local fiscal recovery funds 	I 	21.027 2023-CM-01-44017 	07/01/24-06/30/26 	70,000 	57,125 	- 	58,806 	58,806 	1,681
Coronavirus state and local fiscal recovery funds 	I 	21.027 2023-CM-01-43234 	11/1/24-12/31/25 	251,289 	122,108 	- 	188,752 	188,752 	66,644
TOTAL U.S. DEPARTMENT OF TREASURY 	321,289 	179,233 	- 	247,558 	247,558 	68,325
U.S. DEPARTMENT OF EDUCATION
Passed Through PA Department of Education
Program Improvement - Setaside 	I 	84.010 	042-230187 	06/29/23-09/30/24 	686,695 	686,695 	128,755 	- 	- 	-
Program Improvement - Setaside 	I 	84.010 	042-240187 	07/01/24-09/30/25 	813,966 	759,702 	- 	813,966 	813,966 	54,264
E.S.E.A. Title I 	I 	84.010 	013-240187 	07/01/23-09/30/24 	5,649,199 	5,649,199 	12 	- 	- 	-
E.S.E.A. Title I 	I 	84.010 	013-250187 	07/01/24-09/30/25 	5,579,178 	5,213,159 	- 	5,579,178 	5,579,178 	366,019
TOTAL TITLE I CLUSTER 	12,729,038 	12,308,755 	128,767 	6,393,144 	6,393,144 	420,283
Title II Supporting Effective Instruction 	I 	84.367 	020-240187 	07/01/23-09/30/24 	505,638 	505,638 	1,025 	- 	- 	-
Title II Supporting Effective Instruction 	I 	84.367 	020-250187 	07/01/24-09/30/25 	552,988 	546,745 	- 	552,988 	552,988 	6,243
TOTAL TITLE II 	1,058,626 	1,052,383 	1,025 	552,988 	552,988 	6,243
Title III English Language Acquisition 	I 	84.365 	010-240187 	07/01/23-09/30/24 	597,888 	597,888 	11,094 	- 	- 	-
Title III English Language Acquisition 	I 	84.365 	010-250187 	07/01/24-09/30/25 	604,168 	563,890 	- 	604,168 	604,168 	40,278
TOTAL TITLE III 	1,202,056 	1,161,778 	11,094 	604,168 	604,168 	40,278
Title IV Student Support and Academic Enrichment 	I 	84.424 	144-240187 	07/01/23-09/30/24 	445,970 	445,970 	208,119 	- 	- 	-
Title IV Student Support and Academic Enrichment 	I 	84.424 	144-250187 	07/01/24-09/30/25 	425,501 	226,934 	- 	425,501 	425,501 	198,567
Title IV Stronger Connections Grant (SCG) Program 	I 	84.424 	244-240187 	04/29/24-09/30/26 	1,833,360 	305,560 	- 	1,423,630 	1,423,630 	1,118,070
TOTAL TITLE IV 	2,704,831 	978,464 	208,119 	1,849,131 	1,849,131 	1,316,637
Career and Technical Education 	I 	84.048 	380-250003 	07/01/24-06/30/25 	269,183 	201,887 	- 	269,183 	269,183 	67,296
COVID-19 ARP ESSER 	I 	84.425U 	223-210187 	03/13/20-09/30/24 	34,484,901 	34,484,901 	(1,751,512) 	3,632,507 	3,632,507 	-
COVID-19 ARP ESSER 7% - Learning Loss 	I 	84.425U 	225-210187 	03/13/20-09/30/24 	1,914,466 	1,914,466 	65,014 	39,414 	39,414 	-
COVID-19 ARP ESSER 7% - Summer Programs 	I 	84.425U 	225-210187 	03/13/20-09/30/24 	382,893 	382,893 	(16,266) 	37,151 	37,151 	-
COVID-19 ARP ESSER 7% - Afterschool Programs 	I 	84.425U 	225-210187 	03/13/20-09/30/24 	382,893 	382,893 	(19,024) 	39,907 	39,907 	-
COVID-19 ARP ESSER 2.5% - Emergency Relief for Other Ed. 	I 	84.425U 	224-211159 	03/13/20-09/30/24 	457,588 	457,588 	343,991 	80,318 	80,318 	-
COVID-19 ARP ESSER - Homeless Children & Youth 	I 	84.425W 	181-212181 	07/01/21-09/30/24 	100,195 	100,195 	2,569 	- 	- 	-
TOTAL EDUCATION STABILIZATION FUND 	37,722,936 	37,722,936 	(1,375,228) 	3,829,297 	3,829,297 	-
See Notes to Financial Statements
70

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HAZLETON AREA SCHOOL DISTRICT
Schedule of Expenditures of Federal and Certain State Awards
For the Year Ended June 30, 2025
Pass 	Grant 	Accrued 	Accrued
Through 	Period 	Program or 	(Deferred) 	(Deferred)
Source 	Grantor's 	Beginning\ 	Award 	Total 	Revenue At 	Revenue 	Federal 	Revenue At
Grantor/Program Title 	Code 	Number 	Ending Date 	Amount 	Received 	July 1, 2024 	Recognized 	Expenditures 	June 30, 2025
Special Education - IDEA, Part B 	I 	84.027 	131-230018 	07/01/23-06/30/24 	956,983	$ 	956,986	$ 	478,494	$ 	-	$ 	-	$ 	-	$
Special Education - IDEA, Part B 	I 	84.027 	131-240018 	07/01/24-06/30/25 	990,384 	839,325 	- 	990,384 	990,384 	151,059
COVID-19 ARP - Special Education - IDEA, Part B 	I 	84.027 	232-210018 	07/01/21-09/30/22 	165,577 	165,577 	110,385 	- 	- 	-
Special Education - IDEA Preschool Grants 	I 	84.173 	131-230018 	07/01/23-06/30/24 	223,899 	223,899 	111,946 	- 	- 	-
Special Education - IDEA Preschool Grants 	I 	84.173 	131-240018 	07/01/24-06/30/25 	234,297 	198,568 	- 	234,297 	234,297 	35,729
Passed Through Luzerne Intermediate Unit18
Special Education - IDEA, Part B 	I 	84.027 	N/A 	07/01/23-06/30/24 	297,074 	297,074 	297,074 	- 	- 	-
Special Education - IDEA, Part B 	I 	84.027 	N/A 	07/01/23-06/30/24 	984,950 	984,950 	984,950 	- 	- 	-
Special Education - IDEA, Part B 	I 	84.027 	N/A 	07/01/24-06/30/25 	306,024 	- 	- 	306,024 	306,024 	306,024
Special Education - IDEA, Part B 	I 	84.027 	N/A 	07/01/24-06/30/25 	1,112,229 	- 	- 	1,112,229 	1,112,229 	1,112,229
TOTAL SPECIAL EDUCATION CLUSTER 	5,271,417 	3,666,379 	1,982,849 	2,642,934 	2,642,934 	1,605,041
Direct from U.S. Department of Education
Direct Student Loans 	D 	84.268 	N/A 	07/01/24-06/30/25 	N/A 	46,092 	- 	46,092 	46,092 	-
Federal Pell Grant Program 	D 	84.063 	N/A 	07/01/24-06/30/25 	N/A 	58,057 	- 	58,057 	58,057 	-
TOTAL U.S. DEPARTMENT OF EDUCATION 	57,196,731 	956,626 	16,244,994 	16,244,994 	3,455,778
U.S. DEPARTMENT OF AGRICULTURE
Passed Through PA Department of Agriculture
National School Lunch Program 	I 	10.555 	N/A 	07/01/24-06/30/25 	N/A 	546,122 	(32,156) 	533,862 	533,862 	(44,416)
Passed Through PA Department of Education
National School Lunch Program 	I 	10.555 	64-000 (Fed) 	07/01/24-06/30/25 	N/A 	7,156,056 	174,344 	7,162,961 	7,162,961 	181,249
National School Lunch Program 	S 	(State) 	07/01/24-06/30/25 	N/A 	218,630 	5,447 	218,628 	218,628 	5,444
School Breakfast Program 	I 	10.553 	N/A (Fed) 	07/01/24-06/30/25 	N/A 	1,957,907 	47,501 	1,960,830 	1,960,830 	50,425
School Breakfast Program 	S 	(State) 	07/01/24-06/30/25 	N/A 	69,563 	1,755 	69,596 	69,596 	1,788
TOTAL CHILD NUTRITION CLUSTER 	9,402,156 	229,047 	9,412,015 	9,412,015 	238,906
Child and Adult Care Food Program 	I 	10.558 	N/A (Fed) 	07/01/24-06/30/25 	N/A 	38,166 	- 	38,166 	38,166 	-
Fresh Fruits and Vegetables 	I 	10.582 	N/A (Fed) 	07/01/24-06/30/25 	N/A 	208,812 	- 	208,812 	208,812 	-
TOTAL U.S. DEPARTMENT OF AGRICULTURE 	10,195,256 	196,891 	10,192,855 	10,192,855 	194,490
TOTAL FEDERAL AND STATE FINANCIAL ASSISTANCE 	67,930,382 	873,461 	26,916,319 	26,916,319 	3,453,846
LESS STATE SHARE 	(288,193) 	(7,202) 	(288,224) 	(288,224) 	(7,232)
TOTAL FEDERAL FINANCIAL ASSISTANCE 	67,642,189	$ 	866,259	$ 	26,628,095	$ 	26,628,095	$ 	3,446,614	$
Source Codes
D = Direct Funding
I = Indirect Funding
S = State Funding
See Notes to Financial Statements
71

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Hazleton Area School District
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2025
72
NOTE 1 – BASIS OF ACCOUNTING
The schedule of expenditures of federal and certain state awards of the Hazleton Area School District are
presented on the modified accrual basis of accounting. The information in this schedule is presented in
accordance with the requirements of the Union Grant Guidance. Therefore, some amounts may differ from
amounts presented in, or used in the presentation of the basic financial statements.
NOTE 2 – INDIRECT COST RATES
The school district has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform
Guidance. Section 414.
NOTE 3 – IDENTIFICATION OF MAJOR PROGRAMS
As shown on the accompanying Schedule of Findings and Questioned Costs, the dollar threshold used to
distinguish between type A and type B programs were seven hundred ninety-eight thousand eight hundred
forty three ($798,843) dollars. The District had three major programs, Title I, which is CFDA number
84.010 with total federal expenditures of $6,393,144 which covers 24.0% of federal expenditures, Title IV,
which is CFDA number 84.424 with total expenditures of $1,849,131 which covers 6.9% of federal
expenditures, and Education Stabilization Fund, which is CFDA number 84.425 with total expenditures of
$3,827,297, which covers 14.4% of federal expenditures.
NOTE 4 – RECONCILIATIION TO THE BASIC FINANICAL STATEMENTS
Reconcile to the District's Revenues per the Statement of Revenues,
Expenditure and Changes in Fund Balance (Net Position)
Federal - General Fund 	16,852,808	$
Federal - Food Service 	9,904,631
Total Per Financial Statements 	26,757,439
Less: Medical Assistance payments not recorded on SEFA 	1,177,380
Less: Other Funds reported under federal revenue not required on SEFA 	474,368
Add: Other Funds Recognized in Local Revenues 	104,151
Add: IDEA Funds recognized in Local Revenues 	1,418,253
Total Revenue Recognized per Schedule of Expendiures
of Federal Awards 	26,628,095	$

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Hazleton Area School District
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2025
73
Section I – Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued: 	UNMODIFIED
Internal control over financial reporting:
Material weakness(es) identified? 	yes 	X 	no
Significant deficiency(ies)? 	_ 	yes 	X_ 	none reported
Noncompliance material to financial
statements noted? 	yes 	X 	no
Federal Awards
Internal control over major programs:
Material weakness(es) identified? 	yes 	X 	no
Significant deficiency(ies)? 	yes 	X 	none reported
Type of auditor’s report issued on
compliance for the major programs: 	UNMODIFIED
Any audit findings disclosed that are
required to be reported in accordance with
Section 2 CFR 200.516(a)?? 	yes 	X 	no
Identification of major programs:
CFDA Number(s) 	Name of Federal Program or Cluster
84.010 	Title I
84.424 	Title IV
84.425 	Education Stabilization Fund
Dollar threshold used to distinguish
between type A and type B programs: 	$798,843
Auditee qualified as low-risk auditee? 	X 	yes 	no

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Hazleton Area School District
Summary Schedule of Prior Audit Findings
For the Year Ended June 30, 2025
74
There were no prior year finding or questioned costs as of June 30, 2024.

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