Palmerton Superintendent Scot Engler said the state auditors have completed their work and made two recommendations.

The first was to establish a nepotism policy.He said he would have the wording prepared for the board before the next meeting.The second was that the school district should approve of all of the school bus drivers."This is not something that is in the best interest of the district," Engler said.Engler gave several reasons why he didn't think it would be a good idea for the district to take on that role.The first is that under the Affordable Care Act, it sets up the possibility of placing the drivers in dual employment with the school district and Leon George School Bus Co.The second reason is that it will slow down the hiring process for school bus drivers for Leon George."It's nonsensical," Engler said of the recommendation.Engler also said, barring any sudden snowstorms, the district is set to have graduation on May 25 with the last day of school being May 27 for the students. The last day for teachers would be May 31.He said the state still has not passed a state budget for this school year. Engler is proud of the school board for how members have handled the finances. Some school districts in the state are preparing to close, because they are running out of money."Had this happened three years ago, we would have been in dire straits," Engler said.They will have to dip into the fund balance, and $3 million he hoped to put into the capital reserve for building projects will instead have to cover wages and expenses. But Palmerton is going to be able to finish the school year without borrowing money to stay open.