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External auditor gives Orange County Schools a clean FY2025 opinion; fund balance rises
Summary
Anderson, Smith & Wike presented the fiscal year 2025 audit, issuing clean, modified opinions for financial statements and major federal/state programs, and reporting no material weaknesses. The general fund increased year‑over‑year, aided by discontinuation of a childcare program and other one‑time items.
Anderson, Smith & Wike delivered the external fiscal‑year‑end 2025 audit to the Orange County Board of Education, reporting clean and modified opinions on the financial statements and on major federal and state programs. Auditor Dale Smith said the firm found no material weaknesses, significant deficiencies or compliance findings in the testing performed.
"All four of these letters combined are all clean and modified reports, which is exactly what you all as a board would want to receive," Dale Smith said during the presentation. The audit covered the financial statements and federal/state compliance testing including major programs (COVID‑19 stabilization funds, Title I and the State Public School Fund).
The draft financial summary in the presentation showed the general fund balance increased to roughly $5.0 million at June 30, 2025, a net improvement of about $2.4 million from the prior year. Smith said a significant driver of the increase was the discontinuation of a childcare program during 2025, which boosted the general fund by approximately $1.3 million. He urged the board to maintain fund balance and, if used, to limit use to non‑recurring items.
School food service operations reported smaller losses in FY2025 (about $32,000) compared with prior years; the food service cash balance remained strong at roughly $1.8 million. Smith commended district finance staff for transparent documentation and prompt responses during testing.
The auditor also noted implementation of GASB 101, which required recording a liability for estimated sick‑leave usage; the district recorded a beginning‑of‑year liability of about $15.6 million. Smith described this as a noncash accounting entry required for full‑accrual reporting and said it does not affect the district’s budget process.
Board members thanked finance staff and the audit team for a smooth audit. Auditor Smith said the single‑audit supplement from the federal government remained pending at the time of the presentation and that the firm had confidence the final supplement would not change the draft’s substance.
No formal board action was required beyond receipt of the audit report.
