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County staff: some school reserves are restricted and audit remains outstanding
Summary
County staff told supervisors that the school division's health and food‑service reserves are restricted by federal and state rules and therefore cannot be used to offset the general fund, and that a full audit verifying other unexpended funds is still pending.
During the tax‑rate public hearing, County staff explained which school funds are restricted and which may revert to the county general fund if unspent.
Mr. Jones, answering a question from the board, said the health reserve is ‘‘money that's set aside to pay the school's employee's future medical claims because they were self insured’’ and that the food service fund is ‘‘covered under federal law, and those are restricted and can only be used to operate the food service program.'' He told the board that those reserves automatically carry forward under USDA guidance and would not revert to the county.
Jones added that other unexpended school funds that are not restricted by federal rules can revert to the county at the end of the year and that, in the past, some unexpended funds were designated for capital projects with the concurrence of the board. Supervisor Rountree and others noted the county still lacks a completed audit, and Robertson confirmed staff had provided requested information to auditors and expected an update soon.
The staff explanation was the board's direct response to public requests that school reserves be tapped to reduce the tax‑rate impact; supervisors said they will consider the audit results when finalizing budget details.
