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Frenship ISD board accepts clean audit showing bond-driven growth in assets and liabilities
Summary
Auditors delivered an unmodified (clean) opinion on Frenship ISD’s fiscal-year financial statements and the board voted to approve the report; the auditor attributed year-over-year increases in assets and liabilities largely to a 2025 bond issuance.
Frenship ISD trustees voted to approve the district’s annual audit for the fiscal year ended Aug. 31, 2025, after auditors reported a clean opinion and no material weaknesses.
Jeremy Stevens of auditing firm I. Bailey told the board the auditors found “the financial statements present fairly and … the financial position of the district,” describing the report as an unmodified, or clean, opinion. Stevens said there were no adjusting journal entries as a result of audit procedures and no material weaknesses or significant deficiencies in internal controls over financial reporting.
Stevens summarized the district’s high-level figures: total assets and deferred outflows of resources rose to about $872,000,000 from roughly $668,000,000 the prior year, while liabilities and deferred inflows increased to about $754,000,000 from about $570,000,000. He attributed much of that change to a 2025 bond issuance that increased restricted capital-project funds.
Under the governmental (modified accrual) basis presented in the fund statements, Stevens said total assets at year end were about $318,000,000 (up from about $200,000,000) and the district’s fund balance rose to roughly $291,000,000 (from about $172,000,000). He also reported the unassigned fund balance at approximately $58,000,000 — about 5.6 times average monthly general fund expenditures, above the commonly recommended 3x reserve benchmark.
The administrative staff recommended approval of the audit. The board took a voice vote after a motion and second, and Chair Miller Ford declared the motion carried.
District staff and the auditors noted that federally required compliance testing covered the special education cluster and Title I, Part A; Stevens said the district received an unmodified opinion on compliance for those major federal programs as well. He also told the board the U.S. government’s delayed compliance supplement pushed completion close to the Thanksgiving period but did not change the audit opinion.
The board’s approval allows staff to file the audit as required by state rules; Stevens noted the district typically files with the Texas Education Agency before the statutory deadline and expected the filing to occur within the week.
