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Board approves corrective action plan for school finances after debate over oversight
Summary
After pulling item 8 from the consent agenda, the Franklin County Board discussed a school corrective action plan aimed at resolving a FY25 deficit and improving financial accountability. Supervisors debated delaying a school CFO hire in favor of increased county oversight; the board approved the plan and related consent items.
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The board pulled item 8 from the consent agenda for separate discussion: a corrective action plan addressing financial accountability and a multi-part approach to resolve a roughly $1.4 million fiscal-year shortfall tied to the school system.
Supervisor Meredith urged the board to consider postponing the school system’s plan to hire a new chief finance officer and instead temporarily assign more oversight and training to county finance staff. He said, “I would personally like to see or consider, instead of hiring a new financial director through school for one year… bring this in house, transfer to current staff,” arguing the county could offer closer oversight. County staff and the chair clarified legal limits on directing the school board’s hiring decisions; county staff said they will hire a consultant to review policies and place a county-based oversight position to monitor school-side work while the school system continues its CFO search.
Finance staff outlined the corrective approach: recover $460,961 from a school nutrition reserve, have the schools forgo a $367,000 2024 carryover, and reduce the local transfer by the remaining approximately $585,889 to reach $1.4 million in adjustments. Staff said some reimbursements remain timing-dependent and expected a clearer picture at the March meeting. After discussion, the board moved to approve the corrective action plan as presented and adopted the consent agenda with that exception resolved.
No criminal allegations or new audits were initiated during the discussion; the action focused on accounting adjustments, consultant engagement and closer county–school finance coordination. The board instructed staff to continue joint work with school officials and to report back in March with updated reimbursement timing and any needed budget amendments.
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