Board hears clean audit, approves budget amendment and adopts budget calendar
Summary
An external auditor delivered an unmodified (clean) opinion for fiscal year 24–25 and the board approved Budget Amendment No. 2 to incorporate late state allotments and federal grant releases; staff noted a drop in federal funding from $36 million to $23 million and a continuing child nutrition fund shortfall.
The Lenoir County Board of Education received a fiscal-year audit report and approved a budget amendment during its Jan. 5 meeting.
An auditor reporting to the board said the district received an unmodified (clean) opinion and that prior-year findings had been cleared. "We already renewed the audit for the fiscal year ending June 30, '25. The audit was submitted in December," the auditor said, noting the audit was on track for final approval by the Local Government Commission. The auditor also told the board the district had no reportable compliance findings for audited federal programs.
The auditor highlighted a notable funding shift: federal funds for the district decreased from $36,000,000 to $23,000,000 this fiscal year. The auditor warned that many districts saw difficulties after the end of COVID-era funding and commended district budgeting choices that emphasized one-time projects over recurring operating costs.
The report also flagged the child nutrition fund, which "had a fairly significant loss this year," the auditor said, attributing the decline to lower participation and noting the fund did not pay indirect costs to local funds this year.
Following the audit presentation, finance staff presented Budget Amendment No. 2, which adjusts the working budget to reflect additional state allotments and federal program releases that arrived late in the year. Staff explained allotments and bonuses arrive at different times and must be apportioned when received; as an example, staff said recent teacher bonus allotments have been "a little over $4,000 per certified staff." The board moved and approved the amendment by voice.
District staff also presented the 2026–27 budget calendar that establishes a timeline for preparing and approving next year’s budget; staff said dates are consistent with prior years and invited board questions.
Board members asked about recurring deficits (notably in food services) and asked staff to consider budget-committee review and options to slow recurring shortfalls. Staff said some federal grants and state allotments arrive late and are added through amendments when received.
The board took no further formal action beyond approving the amendment and adopting the calendar; staff said the final audit posting and Local Government Commission approval were expected in the coming week or two.
