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Dare County Schools accepts clean audit, auditors flag $178,000 food-service budget overspend
Summary
Auditors delivered a clean (unmodified) opinion for fiscal 2023–24 but reported program losses — school food service lost $373,009.53 and childcare lost $22,003.97 — and noted a finding that food-service expenditures exceeded appropriations by $178,000 because budget amendments were not prepared in time.
The Dare County Board of Education accepted the district’s 2023–24 audit on Dec. 9 after a presentation by Paul Carson of Anderson, Smith & Wike. Carson said the audit opinion on the financial statements was clean and unmodified but that several program funds showed operating losses.
Carson told the board the school food service program reported a loss of $373,009.53 for the year, a deterioration the auditors attributed primarily to higher food costs and increased salaries and benefits. “It’s our understanding that they’re looking at ways to increase profitability,” Carson said, but he cautioned that if profitability does not improve the general fund could be required to subsidize the program.
The childcare program reported a loss of $22,003.97 after receiving fewer COVID‑19 stabilization funds from the North Carolina Department of Health and Human Services; year‑end cash balances for childcare were reported in the audit, and Carson characterized the program as in sound financial condition despite the year’s loss.
Auditors also reported one compliance/internal-control finding (24.01): expenditures in the school food service fund exceeded appropriations by $178,000 because required budget amendments were not prepared or routed in time. The auditors recommended preparing amendments as needed and indicated they will follow up on corrective steps in the next year’s audit.
Board members pressed auditors and staff about the budget-amendment process; administration described personnel handoffs that delayed an amendment’s arrival at a board meeting and said corrective measures are already being developed to prevent recurrence. Following the presentation and questions, the board voted to accept the audit report.
The item will remain under administrative follow-up; auditors signaled they will re-test the matter as part of the 06/30/2025 audit.
