Forsyth County Schools financial report shows slight revenue shortfall; board accepts audit corrective-action plan

Forsyth County Schools financial staff reported April 2025 cash and revenue figures to the board and said district officials will submit a corrective-action plan to the state following an FY24 audit finding that placed the district on the state’s moderate‑risk list; the board voted to accept that plan.

Larry Hamill reviewed April statements and said the district began the month with roughly $258,000,000 in cash and closed the month near $235,000,000. He told the board that district revenue collections year-to-date were at 89.92% of budget compared with 91.66% at the same point last year and identified the title ad valorem tax as the primary driver behind the variance.

"The biggest culprit right now seems to be the title ad valorem tax," Hamill said, noting the district budgeted about $27.7 million in that revenue source but had collected about $19 million so far. "It looks like we're gonna be about 3 and a half to 4,000,000 dollars down on that. A lot of that has to do with cars not selling as well." Hamill said other revenue and expenditure lines were roughly on track for the time of year.

Audit finding and board action - Audit: the district reported an FY24 audit finding that resulted in placement on the state’s moderate-risk list. Staff presented a collective corrective-action plan and asked the board to accept it for submission to the state. - Board vote: "Mister Grimes made a motion. Mister Esherwood seconds. All in favor? Motion passes." The board approved the corrective-action plan as presented and staff said they will submit it to the state agency as required.

Other financial details Hamill provided included an expenditure rate of about 83.13% year-to-date (slightly ahead of the same point last year) and capital‑project cash balances and school account summaries; school nutrition revenue and capital project funds were reported as within expected ranges for the month.

Budget and debt context: Hamill reminded the board the district has reserved funds tied to previous millage decisions and said the board intends to maintain the current millage rate at 1.418 for the coming year. He and other staff also discussed timing for any potential ballot measure to extend a current revenue program and said staff will present draft splash language for board review if the district proceeds toward a ballot measure.

Implications and next steps: staff said continuing revenue monitoring is needed and that closing the year could result in a slight deficit if collections remain below budget. The approved corrective-action plan will be filed with the state; finance staff will return with updated estimates as more revenue data becomes available and as the district finalizes the FY26 budget timetable.