Halifax County Health Department requests return of $6M fund balance identified since 2014

The Halifax County Commissioners held a regular meeting on July 7, 2025, where significant discussions centered around the financial status of the Halifax County Health Department. Health Director Cheyenna James presented a request to return a fund balance that had been identified as improperly removed since 2014, amounting to approximately $2.5 million.

James explained that during the recent budget season, discrepancies in the department's financial records were uncovered, revealing a long-standing misunderstanding regarding the health department's financial health. For years, the department operated under the belief that it was in a deficit, prompting cuts to services and staffing. However, a review of the financial records indicated that the department had actually been generating revenue for 17 years, leading to a surplus of over $13 million.

The discussion highlighted the importance of understanding the methodology used for financial reporting, which had not been updated in two decades. James emphasized that the health department's funding is protected under General Statute 130A, which mandates that fees collected must be used for clinical purposes. This protection is crucial for maintaining the continuity of health services in the community.

Commissioners expressed concerns about the implications of the surplus and the potential for service reductions. They questioned whether the health department was adequately serving the community, especially in light of recent clinic closures in rural areas. James responded that the department is committed to reestablishing services and addressing transportation barriers for patients.

The meeting concluded with a call for further collaboration between the health department and county management to ensure that funds are utilized effectively to improve health outcomes in Halifax County. The discussions underscored the need for transparency and accurate financial reporting to support the health department's mission in the community.