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King William finance staff explains 'unassigned fund balance' as audit continues; board to review FY26 amendments Nov. 17
Summary
County finance staff told the Board of Supervisors the $2,000,007.54 cash line in fund 180 is not the audited unassigned fund balance and that auditors will reconcile FY25; board will review proposed FY26 budget amendments on Nov. 17 with a public hearing to follow if required.
Interim finance staff briefed the King William County Board of Supervisors on the status of the ongoing audit and the county’s fund-balance accounting, saying the audit team’s reconciliation is needed to determine an official unassigned fund-balance number for FY25.
"Total fund balance is basically your equity," the finance presenter said, and added that unassigned fund balance represents what remains in the general fund after classifications such as restricted, committed and assigned funds are accounted for. The presenter pointed to a cash line in fund 180 showing $2,000,007.54 and cautioned, "That is not fund balance. That is a portion of cash that's sitting aside." She said auditors will provide the formal FY25 position when their work is complete.
The board discussed a disparity between the current cash-line figure and the last completed audit. A supervisor noted the FY24 audited unassigned fund balance showed about $7.2 million and asked whether the county was below the board’s 20% target. Staff replied that FY24’s audited figure (as of 06/30/2024) remains the last formal number and that reconciling FY25 will take months because auditors must reconcile transactions and interfund activity.
To address budget transparency and legal thresholds under the Code of Virginia, finance staff recommended a staged approach: the board will review proposed FY26 amendments at its Nov. 17 meeting, take up amendments individually or as a package, and — if amendments push unbudgeted expenditures above the statutory threshold — schedule a public hearing after December with adoption to follow. The finance presenter said the reconstructed FY26 figures tie back to the originally adopted budget and noted ongoing institutional knowledge gaps in the finance office that have complicated the process.
Board members repeatedly emphasized the need for audited, reconciled numbers before approving major changes. One supervisor asked staff to post the supporting reports online; another urged patience while the new permanent finance director takes over in early November. The board did not take final action on the amendments; it set the November 17 meeting as the next step for deliberation.
