The Milan Area Schools Board of Education voted unanimously Oct. 29 to accept the district's 2025 annual audit as presented in attachment A.

Board member Michael Farrow, who led the discussion, said the district originally budgeted to spend about $2.4 million from reserves but the actual spend was roughly $1.6 million, leaving the district about $800,000 better off than projected. He also told the board the district's property tax revenue rose to $11.1 million in 2025 from $10.6 million in 2024 and that long-term bonded debt declined by about $4.3 million due to scheduled principal payments.

The audit process was described to the board as a "clean audit" by district staff, and board members thanked district finance staff for their work. The board noted the district's fund-balance percentage of 10.45 percent is within its stated 10 to 15 percent target.

Board members cautioned that some of the positive variances are one-time items and urged staff to distinguish one-time funds from recurring revenue when preparing the 2026 budget. "We do need to be mindful of one-time funds versus ongoing funds with respect to next year's budget," Farrow said during the meeting.

The motion to accept the audit was moved by Michael Farrow and supported by Burdett; the vote was 6-0.

The board asked staff to file the accepted audit with the state as required and to continue reporting budget assumptions to the board during the next cycle of planning.