Auditors give Davie County Schools clean opinion; general fund ends FY24 with $3.5 million

An independent audit of Davie County Schools for the fiscal year ended June 30, 2024, resulted in an unmodified (clean) opinion and no findings, auditor Andy Deal told the school board.

The audit presentation noted the district's governmental general fund ended FY24 with a $3.5 million fund balance, and that the general fund decreased by $216,000 in fiscal 2024. Deal described that level of fund balance as "average or above average" for a district the size of Davie County and emphasized it serves as the district's contingency for unforeseen expenditures.

The school food-service fund experienced a decrease in cash of about $48,000 for the year, with ending cash reported at roughly $3.5 million. Deal told the board that state-mandated wage increases and higher food costs have placed pressure on food-service programs statewide, making the relatively small cash decline notable compared with other districts.

Deal reviewed three compliance reports tied to federal and state programs and internal controls; each report was unmodified and carried no findings. He also said a prior-year finding related to cash receipts in the food-service fund had been corrected.

The presentation flagged two long-term budget pressures: the scheduled expiration of COVID-related federal funding that bolstered revenues in recent years and rising state retirement and post-employment health-care contribution rates. Deal showed that, over the past five years, retirement and post-employment health-care costs had risen substantially while the number of covered employees had declined, increasing pressure on the district's operating budget.

Board members and finance staff praised the work of the finance team and principals, noting that capital outlay fund balance enabled recent spending decisions. Deal told the board he encountered no difficulties in completing the audit and that requested records and responses were timely.

The audit materials presented key figures and referenced the full audit report for detailed schedules and footnotes; the board received the presentation and thanked the auditor and the district finance team.