Board approves $410,000 supplemental for schools, hires UHY for interim finance oversight

The Northumberland County Board of Supervisors voted July 23 to approve multiple budget reclassifications and a $410,000 supplemental appropriation to address projected fiscal‑year‑2025 deficits in the school division. The board also approved continued interim finance services from UHY to support the school division’s accounting, purchasing and reporting controls.

What the board approved: supervisors authorized internal transfers (including reprogramming $100,000 from operations and $100,000 from facilities into pupil transportation) and approved a supplemental appropriation of $380,000 for instruction and $30,000 for administration and health, a total supplemental of $410,000. County staff and UHY presented projections showing the board could expect roughly a $280,000 surplus after those actions and an audit; the presenters characterized the net new county contribution for fiscal 2025 as about $130,000 if the projections are realized.

Why it matters: county and school officials said the transfers and the supplemental were needed to legally cover expenditures that were charged to fiscal 2025 as recorded by the county. UHY (contracted as interim financial managers) told the board there were misclassified federal and special‑fund expenditures and accruals that had to be reclassified and that outstanding accounts‑payable encumbrances required review before final closing.

Details presented: Jack Regan of UHY walked the board through the methodology that produced the $410,000 request. He said the firm reclassified expenditures that had been recorded in federal CARES and other special lines into the budget categories the board had appropriated, then added accruals and adjusted open purchase orders based on a data call to department heads. UHY projected that, with the requested transfers and supplemental appropriations, all budget lines would end FY25 with positive balances and an overall surplus to be returned after audit.

UHY and county staff also reported an unresolved payroll‑deduction discrepancy with the Virginia Retirement System; Regan said staff were still reconciling that item and that the preliminary figure may be on the high end pending a detailed reconciliation.

Governance and controls: UHY and school leaders described steps to prevent repeat overspending. The school leadership committed to tighten purchase‑order controls and monthly financial reporting. Regan said purchase orders will be reviewed to confirm budget authority before the county legally obligates funds. Assistant Superintendent Jevon Da Ashton said the division has recently provided purchase‑order training to department leads. Superintendent Dr. Leslie (speaking from vacation) told the board, “I have made it the top priority. Everything now is following, you know, those finance steps of making sure that we are being fiscally responsible.” Regan and school leaders recommended continued UHY oversight during the transition to an in‑house finance director.

Contract and timing: the board reviewed a UHY statement of work for a temporary director of finance and policies‑and‑procedures support. The draft schedule described monthly fees for July and August and a scaled month in September; the document totaled approximately $68,080 for the listed interim services and policies work (county staff said some July work had already begun with the school division). Board members asked UHY to confirm exact dates and to provide a clarification by the board’s follow‑up meeting.

Other fiscal items on the agenda: the board carried forward $517,082.72 in ARPA funds for the school sewer project; approved opioid‑settlement carryovers (roughly $88,540.21 and a small interest posting of $37.20); approved an invoice payment request for the school sewer project (Fairwinds Automation, $10,000) and Grama Consulting ($2,465); and approved hiring a county employee, Mr. Boles, at an annual salary of $37,907.17, effective Aug. 1.

What board members asked for: supervisors requested more detailed line‑item explanations for the components of the supplemental appropriation, a full reconciliation of the Virginia Retirement System payroll deduction issue, and monthly budget‑to‑actual reporting going forward. Multiple board members said they wanted continuing external review until the county’s permanent finance director is in place; Regan recommended an initial transition/monitoring period after a new hire is in place and suggested quarterly reviews for the first year.

Next steps: the board set a follow‑up meeting for July 25 to revisit outstanding clarifications. UHY and school staff were asked to supply the reconciliations, documentation of the purchase‑order adjustments and a timetable for finishing the supplemental‑year close so that the board can confirm the projected surplus and any remaining new money required from the general fund.