The Franklin Regional School District held its regular board meeting on April 27, 2025, focusing on the district's financial audit and general fund balance analysis. The meeting began with a presentation from the district's auditor, who provided an overview of the audit report, highlighting that the district received an unmodified opinion, commonly referred to as a "clean opinion." This indicates that the financial statements are in compliance with applicable regulations, a positive outcome for the district.

The auditor detailed the compliance audit related to federal funds, specifically the National School Lunch Program, confirming that the district met all regulatory requirements without any findings of material non-compliance. This compliance is crucial for maintaining the district's eligibility for federal funding.

The discussion then shifted to the general fund, which is the largest financial resource for the district. The auditor reported that the general fund balance at the end of the 2023-2024 fiscal year was approximately $15.99 million, reflecting an increase of about $4.7 million from the previous year. Key factors contributing to this increase included a transfer of $2.3 million from the technology fund into the general fund, increased tax collections, and higher interest earnings.

The auditor emphasized the importance of the unassigned portion of the fund balance, which was approximately 10% of the current year budget. This figure is significant as it relates to state regulations regarding tax increases; should the district need to raise taxes beyond the annual index, the unassigned fund balance must be at or below 8%.

Further analysis revealed that the committed fund balance also increased, largely due to the transfer from the technology fund, which was earmarked for technology-related expenses. The auditor provided a five-year history of both revenues and expenditures, noting that actual revenues exceeded budget projections by over $5 million, while expenditures were slightly over budget by $180,000, reflecting prudent financial management.

The meeting concluded with a summary of the district's financial health, underscoring the importance of maintaining a balanced budget and the strategic allocation of funds for future needs, including capital improvements. The board was commended for its fiscal responsibility and attention to detail in managing the district's finances.