External auditors give Rockingham County Schools a clean opinion; one compliance finding noted

Paul Carson of Anderson, Smith and White told the Rockingham County Board of Education that the firm issued a clean, unmodified opinion on the district’s audited financial statements for the year ended June 30, 2025. "It is a clean, unmodified opinion," Carson said, adding that the auditors consider the financial information reliable and free of material misstatement.

Carson highlighted fund-level results, saying the district’s general fund balance was about $4.0 million as of June 30, 2025, roughly $1.4 million higher than the prior year. He noted the district had budgeted to use fund balance in the 2024–25 year but nonetheless increased reserves, a positive sign as federal COVID relief funds have expired.

Carson reviewed enterprise and special funds as well. He reported the school food service program moved from a prior-year loss to a year-over-year improvement driven largely by increased U.S. Department of Agriculture reimbursements. The childcare fund also reported an improved operating result and modest cash declines.

The audit included one compliance finding (identified as 25-01) related to the child nutrition inventory: an item had been entered incorrectly into the accounting system, and auditors required a material journal entry to correct the general ledger at June 30, 2025. Carson said management corrected the misstatement and the firm included the adjusting entry in its required communications letter.

Carson said a separate required-communications letter described the finding and confirmed auditors encountered no difficulties or disagreements with management during the audit. He thanked district staff and singled out Miss Ellis and her department for their cooperation during the audit.

The board did not take formal action on the audit at the meeting; Carson said auditors will follow up on the finding as part of next year’s audit procedures.