The district’s independent auditor gave the New Hanover County Schools a clean, unmodified opinion on its draft fiscal‑year 2025 financial statements while flagging a thin unassigned general fund balance and recommending caution on rigid set‑aside policies.

“Luckily, it has no findings,” auditor Adam Sikoric told the board as he opened his review of the draft audit, describing a “clean audit report” and explaining changes required under GASB 101.

Why it matters: A clean opinion means the financial statements fairly present the district’s finances. But Sikoric said the portion of fund balance available to appropriate in the general fund is small — roughly $1 million available — while the district’s “other restricted” fund contains about $23 million. He warned that writing inflexible policies to automatically reserve specific percentages can create future audit problems and reduce the board’s flexibility to respond to changing revenue and expense patterns.

Key findings and numbers: Sikoric said the audit shows limited available general‑fund cash (the report lists about $1 million available to appropriate and roughly $1 million unassigned) and significant restricted reserves in other funds. He noted the district added roughly $6.8 million to other restricted funds this year and that a modest $30,000 net change in the general fund reflects careful year‑end management.

Board reaction and next steps: Board members asked how much of the restricted balance could be repurposed to improve the general fund’s flexibility. Finance staff said some reclassification and budget‑amendment steps could be taken after the audit is finalized and after county commissioners approve any capital reallocation. Sikoric said finalization is delayed pending federal OMB compliance supplements but that he expected no substantive changes beyond dates and formal footnotes.

The audit presentation concluded with staff saying they will bring recommended budget and classification changes to the board in future sessions and that the audit would be finalized once federal compliance guidance is released.