An independent auditor told the Queen Anne's County Board of Education on Nov. 5 that the district's FY25 financial statements received an unmodified opinion and that key fund‑balance indicators improved.

Auditor Audrey McKenrick (UHY LLP) said in presenting the audit that the firm issued "an unmodified opinion," the highest level of assurance. She told trustees the district's total governmental fund balance at year‑end was about $5.7 million, an increase of roughly $3.6 million from the prior year, and that the unassigned fund balance moved from a prior deficit to about $1.3 million available for emergencies.

Rob Watkins, interim chief financial officer, walked through the budget development timeline and described how the district restructured accounting to show school‑level allocations more clearly under the state's Blueprint funding model. Watkins said the district reached aggregate progress toward the statutory requirement that 75% of certain funds be attributed at the school level, but cautioned that additional account restructuring and reporting work remains.

Board leadership and staff emphasized a near‑term compliance timeline with the Accountability and Implementation Board: staff said the AIB will issue warning letters to districts by Dec. 1 for areas not in compliance and that withholding of some Blueprint funds could follow in February unless issues are remedied. Board members urged continued work with partner agencies and careful tracking of expense allocations.

What happens next: District staff will continue account restructuring, provide the board with monthly spending reports required by Blueprint, and coordinate with partner agencies where MOUs and job descriptions (e.g., workforce and Chesapeake College roles for career counseling) affect compliance.