Hanover posts FY25 operating surplus; auditors issue clean opinion

Finance Director Lauren Dahl presented Hanover County's fiscal year 2025 Annual Comprehensive Financial Report to the Board and summarized key results: total general fund revenues of $395.2 million (about 6% higher than budget) and expenditures and transfers totaling $377.3 million. The presentation noted an operating balance of approximately $41.4 million, with planned use in the FY26 county and school budgets and the five-year capital plan.

Dahl also outlined fund-balance categories: restricted, committed, assigned and unassigned. The county reported an unassigned fund balance of $53.4 million, equivalent to 13.5% of revenues and in compliance with the county's fund-balance policy requiring a minimum of 10%. Dahl said $19.1 million of assigned fund balance has already been appropriated for the FY26 budget.

PB Mares partner Mike Garber delivered the external-auditor report and told the Board the firm issued an unmodified (clean) opinion on the county's financial statements. He explained that the new GASB 101 measurement rule required a technical restatement line related to compensated absences but emphasized the restatement reflected an accounting standard change rather than an error. Garber said the audit also included a clean internal-control and compliance opinion; the single-audit section covering federal awards is pending issuance of the federal compliance supplement and will be completed when that supplement is released.

Board members commended staff and auditors for timely reporting and thorough work. No financial policy changes were adopted during the meeting; staff said the full CAFR will be posted to the county website.