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Independent audit returns unqualified opinion; general fund reserves and rising transportation costs highlighted
Summary
Auditors issued an unqualified opinion for Berkeley County Schools' most recent audit; district staff highlighted a general-fund reserve of about $35.3 million and growing contracted transportation costs that exceed state reimbursement caps.
The Berkeley County Schools' independent audit presented Jan. 7 received an unqualified (clean) opinion, meaning auditors reported no findings or recommendations for the year under review.
Chief financial staff summarized key figures from the audit: total revenue across the district's seven funds totaled $313,989,314 and total expenses were $275,696,207, producing a net increase in net position of $38,293,107. The district's general-fund unassigned balance, after accounting for a $6 million commitment to the 2025 budget, was reported at approximately $35,316,363, about 12.8% of the general fund.
The audit also underscored transportation cost pressures. The district reported a roughly $5.5 million increase in transportation costs, driven largely by contracted varsity travel as the district faces a shortage of drivers and insufficient in-house vans. Staff noted the state transportation reimbursement is capped under the state step formula (reimbursed at 87.5 percent of eligible costs), and the district has exceeded that cap so additional contracted costs are not fully reimbursed.
Staff said McKinney-Vento funding (federal grant for homeless students) provides a modest allocation (cited in the meeting as roughly $75,000 annually), which staff acknowledged falls far short of covering related transportation needs for students who must be transported to school-of-origin locations.
Why it matters: an unqualified audit affirms the district's financial statements and compliance for the audited programs, but the transportation cost trend and limited federal funding for McKinney-Vento students signal fiscal pressure in that service area.
Additional notes
- The audit (posted to state and federal audit sites) included a single-audit review of two major federal programs this cycle: ESSER (COVID-era funding) and the child nutrition program; auditors reported no issues for those programs during the audit period. - The district outsources some transportation runs and is working with its contractor (Epic) to obtain more vans and drivers to reduce contracted costs.
Ending
Board members asked follow-up questions about grants and fund breakdowns; staff said they would provide requested detail and are available to meet with board members to review specific grant accounting or fiduciary fund questions.
