SLIPPERY ROCK — An auditor's report confirmed at Monday's meeting that the Slippery Rock School district had a surplus of $1.2 million in its 2016-17 budget.

The auditor, Peter Vancheri, a certified public accountant from the firm Hosack, Specht, Muetzel and Wood, credited the district's healthy financial balance sheet to staying under budget and an increase in taxes collected and state subsidies received.

Vancheri said the district was more than $40,000 under its budget for the 2016-17 school year, despite the loss shown in the food service fund, which was about $34,000.

He said the food service losses are trending.

“Obviously that's going to have to be something that you'll have to keep an eye on moving forward,” Vancheri said.

The audit showed an increase in collections of real estate and earned income taxes.

Paul Cessar, district business manager, said the state was more generous with its subsidies particularly in areas of retirement and transportation.

He said the extra funds will serve the district well.

“We have some aging buildings, renovations and additions,” Cessar said.

Vancheri also reported that there were no issues with the mandated single audit. The district qualified for the extra audit measures because it received more than $750,000 in subsidies from governmentwide programs.