District finance report shows fund balance decline; PEP transfers and internal-audit findings reviewed
Summary
Leah Veil reported Oct. 2025 revenues of $8,583,000 and expenditures of $8,649,000 leaving a year-to-date net decrease of $3.2 million and an October fund balance of $15,376,000 (about $1.748 million below target); PEP deposits and transfers to capital projects were detailed and auditors reported eight findings in internal school funds.
Johnson City Schools’ finance director, Leah Veil, presented the financial report for the period ending Oct. 31, 2025, and auditors reviewed internal school funds activity for the fiscal year ended June 30, 2025.
Veil said revenues for the month totaled $8,583,000 and expenditures were $8,649,000, leaving a net decrease of $3,200,000 for the fiscal year to date. She reported an October fund balance of $15,376,000, which she said was $1,748,000 below the district’s target. Local option sales tax collections through October were 6.2% higher than the previous year.
Veil also reported PEP-account activity: Oct. deposits were $303,000 for the city and $180,000 for schools; she said the PEP account had seen a 4.9% sales-tax increase through October. Veil reported transfers out of the PEP account of $2,360,000 for the secure vestibules project and $33,990,000 for the South Side HVAC project; she said the account balance at month end was $4,076,000 and the city would provide spreadsheets for periodic project updates.
On the internal funds audit, Curtis Morrison of ClearPoint CPAs presented a clean (unmodified) audit opinion and summarized eight findings related primarily to purchase orders, missing support for disbursements, uncanceled invoices, fundraiser preapproval and timely deposit requirements. Auditors emphasized that many findings relate to turnover among bookkeepers and that most schools corrected prior-year issues.
A motion to accept the finance report and the internal funds audit was made and approved by voice vote.
