Hannifford audit finds clean opinion; board approves short-term line of credit and is urged to adopt fund-balance policy

The Hannifford Career Technical Center received an unmodified audit opinion for fiscal year 2025, the district’s auditor told the board during its June meeting. "Your school district received an unmodified opinion, which is the highest opinion that we can give," said Samantha Ruggles, an audit manager with RHR Smith, summarizing the audit team's conclusion that the district’s financial statements are fairly stated.

Ruggles walked the board through three years of financial comparisons, pointing to a notable cash decline tied largely to a 2023 bond that carries roughly $600,000 of combined principal and interest annually. She said the district currently has portions of its general fund committed to the FY26 budget and recommended two changes the auditor sees commonly as sound practice: a written fund-balance policy (she recommended a target in the range of 30–90 days of operating expenses, with 90 days presented as an optimal example) and the routine posting of both revenue and expense budgets in the district’s accounting software for visibility.

Board members and staff asked several clarifying questions about tuition accounting and how increases in enrollment or changes to tuition rates affect year-to-year comparisons. Ruggles explained that interest income gains and improved revenue categorization also influenced the latest results, while staff described extensive cleanup work by the business office that improved reporting accuracy.

After discussion, the board moved to accept the audit. The motion passed; board members publicly thanked business-office staff for the effort that supported the cleaner financial statements.

Separately, the board approved an annual short-term line of credit to manage summer cash flow. Business manager Austin Haynes said the district sought authority to borrow up to $2,225,000, a reduction from prior-year borrowing, to bridge timing differences until state education payments arrive in the fall and winter. The board approved the authorization; staff will complete bank documents and signatures via DocuSign.

The board did not adopt a formal fund-balance policy during the meeting but heard the auditor’s recommendation and discussed next steps for the finance or policy committee to return with a proposed policy draft. The acceptance of the audit and approval of the line of credit are official board actions recorded in the minutes; the fund-balance policy recommendation remains an actionable follow-up for staff and committee work.