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Independent audit finds unmodified opinion; Radford schools report revenue swings and capital work
Summary
External auditors issued an unmodified opinion on Radford City Schools’ financial statements and highlighted revenue and expenditure changes tied to one‑time construction grants, declining federal ESSER funds and continuing capital projects. Audit recommendations focused on school activity fund controls and online payment platforms.
An independent audit presentation to the Radford City School Board concluded with an unmodified opinion: auditors reported they believe the division’s financial statements are materially correct.
Diana Epperly, the lead auditor, summarized 10-year historical financial data and said state revenues decreased about $2.4 million largely because a one-time construction grant of about $1.8 million was present in the prior fiscal year and basic school aid fell in the most recent year. Federal revenue fell by about $500,000 — driven in part by a roughly $200,000 reduction in ESSER pandemic-era funds — and a prior ARPA grant and pandemic bonus had also influenced earlier-year balances.
Local operating contributions from the city rose modestly (about $84,000), while local capital contributions decreased roughly $690,000; auditors said those totals vary year to year with capital project timing. Instruction spending decreased roughly $1.8 million (salary/benefits and virtual Virginia costs), while facilities and capital project spending rose about $1.4 million as the division completed projects such as auditorium seating and ongoing items including bleachers, HVAC and science classroom updates. The audit shows an overall fund-balance decrease of about $1.3 million tied to construction spending. The presentation also noted a $350,000 increase in the VRS pension liability (measured with a one-year lag) and an OPEB decrease of roughly $92,000.
Audit recommendations: Epperly and the audit team recommended that the division (1) evaluate and standardize online payment platforms used by schools (PayPal/Venmo were in use) and (2) adopt a single school activity fund accounting software across schools to improve internal controls and efficiency. Auditors also noted a new state requirement that public deposit accounts be confirmed to the state treasury and said that practice was being implemented.
Operational updates presented to the board included enrollment and attendance trends (brick-and-mortar enrollment ticking up in some schools), implementation of a bell-to-bell cell phone policy at Radford High School and several capital projects: auditorium seating and a new concession stand are complete or nearly complete, and a track replacement project will follow the current soccer season; the foundation plans fundraising support for the track and the board budgeted $750,000 in local funds but staff said estimates may increase depending on chosen finish tiers.
Why it matters: The audit and financial review outline the division’s fiscal position after one-time construction funding and federal pandemic dollars declined. Audit recommendations on controls and online payments could change how schools accept and account for activity-fund revenue.
Ending: Auditors closed without significant qualifications and made actionable internal-control recommendations. Staff said they are working through capital schedules and will present budget proposals in March.
