Iredell-Statesville audit 2023–24: auditors give unmodified opinion; district used fund balance to balance 2024–25 budget

Anderson, Smith & Wike delivered the Iredell‑Statesville Schools audit for the fiscal year ending June 30, 2024, and reported an unmodified opinion — the highest level of assurance for financial statements.

Shannon Denison, partner at Anderson, Smith & Wike, told the board, “I'm pleased to report that we had an unmodified opinion of the audit.” She said auditors found no financial-statement findings and no disagreements with management during the audit process.

Key audited figures presented to the board included an approximate $9,000,000 ending balance in the district’s general fund; capital outlay beginning the year at roughly $11,000,000, spending about $1.5 million and ending just under $10,000,000; and federal awards reviewed totaling about $44,800,000 and state awards of about $199,000,000. Auditors reported budget-to-actual results that generally stayed within appropriations and no material overages.

Denison noted that COVID-related (ESSER) funding has declined and that the district must plan for continued reductions in federal pandemic-era funds. The audit showed about $10,000,000 of COVID-era expenditures in 2024 with roughly $1.6 million remaining that required appropriation and timely spending to meet federal timelines.

Board members and staff discussed the district’s use of fund balance to cover shortfalls. Finance staff said the board appropriated nearly $2.5 million of general fund balance into the 2024–25 budget to balance it. Staff also said roughly $4,000,000 in fund balance was used across different funds during the year for capital and other purposes.

Special-education and Medicaid reimbursement emerged as a recurring concern. District staff said approximately $1.3–$1.6 million of the special-revenue carryover related to Medicaid and that Medicaid cash on hand had fallen to roughly $100,000 at June 30; contracted-service costs and higher needs among students are pressuring budgets in exceptional‑children (EC) programs. Staff and board members urged state-level attention to special‑needs funding and discussed the lag between service delivery and Medicaid reimbursement.

Board members asked about capital-asset increases and specific projects in progress. Finance staff explained that capital-asset increases reflect construction-in-progress, renovations and specific projects — e.g., work on a new ASC building and track and field improvements at West Iredell High School — and that projects move from “construction in progress” to capital assets when completed.

Audit highlights presented: - Unmodified opinion (clean audit). - No financial-statement findings or management letters reported in the public presentation. - General fund ending balance approximately $9,000,000; capital outlay balance just under $10,000,000 at year end. - Federal awards reviewed: about $44,800,000; state awards reviewed: about $199,000,000.

The auditors and finance staff invited board members to raise questions; board members pressed for clearer public presentation of the budget and for advocacy to state legislators regarding special-education funding.

The board did not take a formal vote on the audit during the public presentation. The audit will be posted and retained with the district’s financial records.