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County auditors say Carroll County—inancial statements are materially correct, flag reconciliation and school-budget issues
Summary
External auditors told supervisors the county—nded FY2025 with roughly $64.84 million in net position and an unassigned fund balance near 32% of expenditures, called the financial statements "materially correct," and recommended adjustments and tighter school‑budget controls.
The Carroll County Board of Supervisors heard an audit presentation June 22 from Robinson, Palmer & Cox that concluded the county—inancial statements for the year ending June 30, 2025, are "materially correct," while noting some internal‑control weaknesses that required material adjustments.
The auditors told the board the county—inished the year with about $64,840,000 in net position, including roughly $19 million in net investment in capital assets and just over $1 million in restricted balances. The auditor said unrestricted net position was about $44.8 million and the general fund—nding fund balance was approximately $42 million with ending cash near $34 million.
Why it matters: the auditors said the county—ontinues to carry a sizable fund balance and cash position that provides a cushion, but they identified internal‑control issues that require attention and recommended the school board seek additional appropriations when its expenditures will exceed the appropriation.
Auditor remarks and findings
"We think the financial report is materially correct," the county uditor said, adding this does "not mean it—omes without error" and that the team had no federal‑program compliance findings in the programs they sampled. The auditors reported they identified material adjustments during reconciliations between school board consulting accounting records and the county—ooks and included recommended audit adjustments in the letters to those charged with governance.
The audit presentation outlined trends: over the five‑year look‑back general‑fund revenues grew about 0.94% annually (less than 1%), locally generated taxes rose (to about 51% of general‑fund revenue), and state and federal aid declined. The auditor said operating expenditures showed very low growth (about 0.57% annualized) and noted debt service decreased as some debt was paid down.
Board questions and follow up
A supervisor asked whether a statutory minimum exists for unassigned fund balance; the auditor replied there is no statutory floor but that 10% is commonly recommended as a minimum (and that in some contexts 15% may be more appropriate), explaining that a 10% unassigned balance equates to roughly 5.2 weeks of operating coverage.
The auditors specifically recommended the school board return to the supervisors to request additional appropriation if they anticipate exceeding their budget in future years; during FY2025 the auditors said the school board's expenditures exceeded its appropriation but those overages were offset by additional state and federal revenues and did not require an additional county transfer.
Next steps
Auditors provided management comments and control recommendations, particularly around bank reconciliations and the school accounting entries, and offered to work with county staff on implementation. The auditor closed by offering contact information on the audit handout for follow‑up questions.
The board did not take formal action in response to the audit at the meeting beyond asking staff to note the recommendations and follow up as needed.
