4-2025 Lycoming-Clinton Joinder Board - Final Governance Letter.pdf

March 31, 2026

Board of Directors Lycoming-Clinton Joinder Board

We have audited the financial statements of the Lycoming-Clinton Joinder Board (the “Joinder”) as of and for the year ended June 30, 2025, and have issued our report thereon dated March 31, 2026. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit

As communicated in our engagement letter dated January 12, 2026, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Joinder’s internal control over financial reporting. Accordingly, as part of our audit, we considered internal control of the Joinder solely for the purpose of determining audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgement, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit

We conducted our audit consistent with the planned scope and timing communicated in our engagement letter.

Compliance with All Ethics Requirements Regarding Independence

The engagement team, others in our firm, as appropriate, and our firm, have complied with all relevant ethical requirements regarding independence.

In order to eliminate the identified threats to independence associated with our assistance with the preparation of the financial statements, data collection form, and tax returns, we have ensured a member of firm management, independent of the associated activity, performed a review of the financial statements, data collection form, and tax returns.

Significant Risks Identified

We have identified the following significant risks: management override of controls and improper revenue recognition due to error or fraud, which were considered inherent risks according to Generally Accepted Auditing Standards. Although these significant risks were identified, we designed our audit procedures to mitigate the risks.

Qualitative Aspects of the Joinder’s Significant Accounting Practices

Significant Accounting Policies

Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the Joinder is included in Note 1 to the financial statements. The District adopted the remaining provisions of Governmental Accounting Standards Board’s Statements No. 101, “Compensated Absences” and No. 102, “Certain Risk Disclosures”. The adoption of these statements had no effect on previously reported amounts. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgements. Those judgements are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgements. The most sensitive accounting estimates affecting the financial statements are:

Management’s estimate of the useful lives of capital assets used to calculate depreciation expense was based on the historical lives of similar assets. We evaluated the key factors and assumptions used to develop the useful lives of capital assets and determined that the useful lives of capital assets are reasonable in the calculation of depreciation expense in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.

Financial Statement Disclosures

Certain financial statement disclosures involve significant judgement and are particularly sensitive because of their significance to the financial statement users. There are no disclosures involving significant judgement or that are particularly sensitive.

The financial statement disclosures are neutral, consistent, and clear.

Significant Difficulties Encountered during the Audit

We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements

For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all identified misstatements.

In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. See the attached list of misstatements that were identified during the audit and corrected by management.

Disagreements with Management

For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the Joinder’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Circumstances that Affect the Form and Content of the Auditor’s Report

For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. No circumstances affect the auditor’s report. We have made a modification to include an other-matter paragraph for the omission of management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Our opinion on the basic financial statements is not affected by this missing information.

Representations Requested from Management

We have requested certain written representations from management dated March 31, 2026.

Management’s Consultations with Other Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters.

Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing or accounting matters.

Other Significant Matters, Findings, or Issues

In the normal course of our profession association with the Joinder, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the Joinder’s auditors.

Restriction on Use

This report is intended solely for the information and use of the Board Directors and management of the Joinder and is not intended to be and should not be used by anyone other than these specified parties.

Very truly yours, Zelenkofske Axelrod LLC

Lycoming-Clinton Joinder Board Journal Entry Report June 30, 2025

Account Description Debit Credit

EI-NON-23070 Loan Proceeds 23,193.00 EI-NON-59999 Loan Principal 7,645.00 ID-NON-23070 Loan Proceeds 50,460.00 ID-NON-59999 Loan Principal 20,850.00 MH-NON-23070 Loan Proceeds 83,590.00 MH-NON-59999 Loan Principal 41,006.00 EI-NON-10805 Capital Outlay 23,193.00 EI-NON-10805 Capital Outlay 20,850.00 ID-NON-10805 Capital Outlay 50,460.00 ID-NON-10805 Capital Outlay 7,645.00 MH-NON-10805 Capital Outlay 83,590.00 MH-NON-10805 Capital Outlay 41,006.00

Total 226,744.00 226,744.00

CY-NON-11000 Accounts Receivable General 913.00 CY-ADM-42000 County of Lycoming Income 913.00

Total 913.00 913.00

HS-ADM-30000 Fund Balance 160.00 HS-SAM-53320 Office Supplies 160.00

Total 160.00 160.00

HL-NON-30000 Fund Balance 231.00 LC-NON-30000 Fund Balance 98,766.00 HL-NON-24200 Unearned Income 231.00 LC-NON-24200 Unearned Income 98,766.00

Total 98,997.00 98,997.00

Construction in Progress 1,823,203.00 Note Payable 1,823,203.00

1,823,203.00 1,823,203.00

Adjusting Journal Entries JE # 5 Government-Wide: Prior-Year Error Correction

Adjusting Journal Entries JE # 3 To make HSDF fund balance roll

Adjusting Journal Entries

Adjusting Journal Entries JE # 4 To roll fund balance and record HealthChoices grant income

To reclassify Loan proceeds to capital outlay Adjusting Journal Entries JE # 1

Adjusting Journal Entries JE # 2 To zero out fund balance at end of year

2025 Lycoming-Clinton Joinder Board - Journal Entry Report