Florence School District 3 received a clean opinion on its annual general fund financial audit. According to the district's audit report and district previous financial data, it ended the 2022-2023 school year with its highest fund balance in over 23 years.
Tim Lyons of Mauldin & Jenkins, an independent certified public accounting firm conducting the district's annual financial audit, presented findings on FSD3's $33.9 million budget during a called board of trustees meeting on November 28.
Savings during the 2022-2023 fiscal year allowed FSD3 to add $2,089,712 to the fund balance, bringing the total to $13,069,926. Dr. Laura Hickson, superintendent of FSD3, said, “This is a team accomplishment. We have a competent finance team and staff in the right seat, and I am proud of this accomplishment!”
A state law passed in 2017 requires school districts to have a fund balance of at least 8.33 percent of the current year's expenditures. After adding over $2 million, the district exceeds the required state percentage.
Lyons noted that the South Carolina Department of Education requires school districts to maintain 8.33% of expenditures in fund balance, while the Government Finance Officers Association (GFOA) recommends a minimum of 16%. As of June 30, FSD3 reported approximately 41% of expenditures in the general fund balance, Lyons said.
Lyons said the district received an unmodified, or clean, opinion based on the financial statements. In addition, there were no material weaknesses or significant deficiencies in internal control, and the auditors reported no non-compliance.
Dr. Hickson said she is pleased with the audit results and the district's conservative fiscal policies and systems that allow the addition of over $2 million to the general fund balance. Superintendent Hickson said that FSD3 is committed to being good stewards of taxpayer funds and prudently expending funds will enable the district to maintain a solid financial footing.