Audit finds clean opinion; district faces enrollment-driven staffing and budget pressures

An outside audit firm reported a clean, unmodified opinion on Granville County Schools’ 2024–25 financial statements during the board’s December meeting, and district staff outlined budgetary pressures tied to enrollment declines and possible funding reductions.

Auditor Donna Greenberg told the board the financial section received a clean opinion and the compliance letters issued for federal and state grant testing were likewise unmodified, indicating the auditors did not note internal control weaknesses or improper use of grant funds.

"We're happy to report that it is a clean, unmodified opinion," Greenberg said, noting the general fund and other funds remain in reasonable condition while cautioning that 2025–26 will be the first full year without COVID-relief dollars.

The audit presentation included fund-balance figures (the draft report lists the general fund balance as approximately $4.0 million as of June 30, 2025) and noted specific program activity: the school food service reported an improved loss for the year (approximate improvement of $472,000 driven by reduced salaries/benefits and increased USDA reimbursements), while the childcare fund reported a profit and healthy cash balances.

Finance and HR staff then briefed the board on enrollment and staffing: the district's official best-1-of-2 Average Daily Membership comparison showed an approximate decline of 409–410 students year over year; charter transfers accounted for about 65 of that change. Staff said the district already eliminated 19.5 positions between May and December 2025 through attrition or transfer and now expects a further allotment reduction of approximately 18.4 positions based on projected enrollment; locally funded instructional-support positions (about 10.8) could also be at risk if federal/title funding declines.

District officials framed consolidation as a partial response to these budget realities and said any further reductions in federal or state funding (including low-wealth or Title I calculations) could increase the number of positions the district must reduce. Finance staff outlined a budget timeline that aims to produce a district budget proposal for presentation to the county by March and required staff actions and committee reviews through January and April to finalize placements and allocations.

Superintendent Ben Whitmore and board members publicly thanked finance staff for achieving a clean audit while acknowledging the difficult tradeoffs ahead as the district balances fiscal stewardship with program continuity.