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External auditor issues clean opinion; Germantown general fund grew to roughly $10.2 million
Summary
Baker Tilly principal Paul Franz told the Germantown School District board the 2024–25 audit received an unmodified opinion; the district added roughly $1.2 million to general fund balance, leaving about $8.1 million unassigned (≈16% of operating costs), within recommended policy ranges.
Paul Franz, principal with Baker Tilly, presented the district’s 2024–25 financial audit and said the firm issued an unmodified (clean) opinion on Germantown’s financial statements as of June 30, 2025.
Franz said in plain terms the audit found the financial statements contained required disclosures and ‘‘are free of material misstatements.’’ He reported the district started the year with just under $9 million in general fund balance, planned to add about $180,000, and instead added just over $1.2 million to end the year at about $10.2 million.
Franz described categories of fund balance (non‑spendable, restricted, committed, assigned and unassigned) and said the unassigned reserve — the district’s primary operating reserve — was about $8.1 million, roughly a 16% ratio versus operating costs. He observed that a 10–25% target is commonly recommended for cash‑flow resilience and said he saw no disclosure or compliance issues requiring board action.
Board members asked about legal limits and audit‑flagged control items. Franz said there is no legal cap on fund balance and reiterated a common audit comment about segregation of duties in small business offices, noting the item is presented as a professional‑standards disclosure rather than an immediate operational failure.
No formal board action followed beyond receiving the audit presentation; Franz encouraged ongoing oversight and a clear fund‑balance plan.
