Baker Tilly issues clean audit for Germantown; general fund balance rises to about $10.2 million

An outside auditor told the Germantown School District finance committee Tuesday that the district's 2024‑25 financial statements received an unmodified opinion and that the district added roughly $1.2 million to its general fund balance during the year, bringing the total to about $10.2 million.

Paul Frantz, principal at Baker Tilly, said the audit found the financial statements free of material misstatements and noted that the district's financial reporting and disclosures satisfy applicable governmental accounting standards. "We've issued an unmodified opinion, also known as a clean bill of health," Frantz said.

Frantz walked trustees through fund‑balance categories used in the presentation: restricted (about $1.4 million), committed (board‑earmarked uses), assigned and an unassigned reserve (about $8.1 million, the district's primary rainy‑day amount). He told the committee that multi‑year forecasting and fund‑balance policy help protect the district from short‑term cash pressure and borrowing.

The firm also completed the required federal single audit and reported no findings. Frantz noted routine professional observations about segregation of duties in a small business office — a common disclosure — but said the engagement did not reveal material weaknesses that warranted further action beyond standard management oversight.

Board members asked about the district's fund balance policy and whether the reported percentages were compliant; the auditor said the district was within generally recommended ranges and had appropriate plans in place.

The auditor encouraged continued multi‑year budgeting and clear communication of fund‑balance designations in the district's financial reporting.