Rockdale County schools receive clean audit; auditors flag lean reserve levels

Hope Pendergrass, an auditor with Molden and Jenkins CPAs, told the Rockdale County Board of Education that the district received an unmodified (clean) opinion on its 2025 financial statements.

"In our opinion, your financial statements are materially correct," Pendergrass said, adding that auditors found the district's federal programs reviewed for the single-audit (Title I and a bus retrofit program) to be "in order." She pointed the board to three documents distributed before the meeting: the annual financial report, the single audit report and the auditor's discussion and analysis.

The auditor summarized key figures: the district's fund balance as of June 30 was about $33.5 million, cash on hand about $37 million, and total expenditures for the year about $262 million. Pendergrass said that, when compared to annual expenditures, the district had "a little less than seven weeks" of fund balance at fiscal year end, describing that level as "extremely lean" while noting seasonal timing before property-tax revenue arrives.

Pendergrass also highlighted a budgeting plan item: the proposed fiscal year 2026 budget includes approximately $4.88 million of planned reserve use. "You might want to consider" the long-term implications of planned reserve draws, she said, noting that about 90% of the district's budget is salaries and benefits and that employer contributions to the Teachers Retirement System (TRS) have increased substantially over the last decade.

The audit presentation included additional context on capital assets, long-term debt, and pension/OPEB liabilities and recommended that board and management consider the continuing impact of statewide changes in benefit and reporting rules.

What happened next: after the presentation the CFO and superintendent discussed monthly financial reports and the board heard that year-to-date revenues and expenditures for January were provided for review. No formal action on the audit was required at the meeting.

Votes at a glance: the board approved the agenda, approved January meeting minutes, and approved the consent agenda (each motion recorded and approved by a 7-0 vote during the meeting). Separately, after an executive session the board voted 7-0 to deny a requested hearing and to uphold a superintendent finding under Board policy KN.

The board will continue budget planning ahead of the next fiscal year and was urged by the auditor to weigh the short-term benefit of reserve use against long-term sustainability given rising benefit costs.