Fayette County Schools audit shows $14.43 million fund balance; reserve rate just below state guidance

Paula, the district finance staff member, told the Fayette County Board of Education on March 31 that the fiscal-year 2025 audit was complete with “no findings” and an unmodified opinion.

"We finally got our financial statements back. Our audit has been complete for fiscal year 2025," Paula said, then walked trustees through the income statement and balance sheet. She reported total revenues of $81,337,809 and total expenditures of $75,734,687, leaving an ending general fund balance of $14,433,996.

Paula explained how that balance is categorized. Restricted funds — largely carryover from an excess levy — amount to $5,039,518; the assigned portion is $8,781,955; and the remaining unassigned balance is $612,000. Using the state's technical definition of unrestricted funds, Paula said the district's unrestricted balance would be reported at roughly $9.39 million. "Your unrestricted fund balance well, at the end of that fiscal year, the unrestricted fund balance was $9,300,000," she said, adding that unrestricted funds represent about 12.4% of last year’s expenditures.

The percentage falls just under the state's preferred target (Paula cited a state recommendation near 13.6%), which she characterized as "a little bit under, but we're very close."

Paula also summarized five outstanding capital leases and their projected payoffs: a lease that will require $715,000 remaining after this fiscal year and be retired next year; a Bank of the Ozarks lease with a remaining principal and interest balance she listed at about $4.4 million, maturing in fiscal 2033; a lease tied to Oak Hill Middle School construction with an estimated $4.7 million remaining, maturing in fiscal 2034; a $5 million lease entered in 2022 for the new Meadow Bridal Regional School with roughly $4.8 million principal remaining and a fiscal-2032 payoff; and a $7.5 million athletic-fields lease showing about $7.4 million remaining and maturing in fiscal 2036. Paula said the district continues to monitor market rates for possible refinancing opportunities.

Board members received copies of the audit with the agenda packet. After the review, the board moved to accept the 1,000-series reports (which included the audit presentation); the motion was seconded and recorded by the chair.

The board did not amend the audit presentation during the meeting. Trustees asked clarifying questions about assigned funds and where debt-service payments appear in the general fund statements; Paula pointed them to the income-statement lines and the notes in pages 17–18 of the financial packet. The board accepted the audit-related reports as presented.