Draft audit shows unmodified opinion and stable general fund; Child Nutrition cash balance declined
November 11, 2025 | Asheville City Schools, School Districts, North Carolina
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The district’s auditor presented the 2024–25 audit in draft form and reported an unmodified opinion — the highest standard auditors issue for public entities — while noting the final document awaited federal approvals for issuance.
The auditor reported the district closed the fiscal year with a general fund balance of about $12,900,000 and a capital outlay fund balance of approximately $5,400,000 (with an increase of about $1.7–$1.8 million during the year). Other restricted special-revenue balances were reported at about $4,500,000. The auditor noted roughly $2,000,000 of balances were appropriated into the 2025–26 budget and that about $10,800,000 in general-fund resources remained available for future spending.
A point raised for board attention: the Child Nutrition fund’s cash balance fell from roughly $274,000 to about $61,000 over the reporting period. The auditor said this decline reflected several factors including a decrease in federal reimbursement rates that had risen during COVID-era support, state-mandated increases in pay and minimum wages for program staff, and higher food costs; the hurricane last year also disrupted capital projects and budgets. The auditor said the change does not indicate a finding and that no misstatements or findings were identified in the draft audit.
Board action: a motion was made to accept/receive the draft audit as presented to the board; members voted to receive the audit information. The auditor emphasized that the draft is the document the district expects to be final once federal signatures are available.
Why it matters: an unmodified opinion indicates the auditor did not identify material misstatements in the financial statements. At the same time, the Child Nutrition cash reduction is an operational issue that could require general-fund support if the trend continues.
Next steps: staff and the board will monitor the Child Nutrition fund and include audit details in the final audit when federal approvals are complete.
The auditor reported the district closed the fiscal year with a general fund balance of about $12,900,000 and a capital outlay fund balance of approximately $5,400,000 (with an increase of about $1.7–$1.8 million during the year). Other restricted special-revenue balances were reported at about $4,500,000. The auditor noted roughly $2,000,000 of balances were appropriated into the 2025–26 budget and that about $10,800,000 in general-fund resources remained available for future spending.
A point raised for board attention: the Child Nutrition fund’s cash balance fell from roughly $274,000 to about $61,000 over the reporting period. The auditor said this decline reflected several factors including a decrease in federal reimbursement rates that had risen during COVID-era support, state-mandated increases in pay and minimum wages for program staff, and higher food costs; the hurricane last year also disrupted capital projects and budgets. The auditor said the change does not indicate a finding and that no misstatements or findings were identified in the draft audit.
Board action: a motion was made to accept/receive the draft audit as presented to the board; members voted to receive the audit information. The auditor emphasized that the draft is the document the district expects to be final once federal signatures are available.
Why it matters: an unmodified opinion indicates the auditor did not identify material misstatements in the financial statements. At the same time, the Child Nutrition cash reduction is an operational issue that could require general-fund support if the trend continues.
Next steps: staff and the board will monitor the Child Nutrition fund and include audit details in the final audit when federal approvals are complete.
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