Caswell County accepts late 2022–23 audit; auditor flags repeat findings and timeline to LGC

The Caswell County Board of Commissioners voted to accept the 2022–23 audit after a presentation from the county’s external auditor, who described repeated findings tied to staffing turnover and year‑end close processes and said staff must prepare a response for the North Carolina Local Government Commission.

Scott Adams of Thompson Price & Company reviewed the audit and told the board the firm expects improvements for the June 30, 2024 audit if the county can produce a reliable trial balance. “The goal would be to have it to the LGC in the month of July,” Adams said, adding that many of the repeat findings stem from timing and staffing changes during the audit period.

Auditors listed several recurring issues: delayed year‑end closings and other key processes, EMS receivable balances and allowances that need periodic review, fund balances and interfund transfers requiring reconciliation, the need to document asset disposals and depreciation, an outstanding loan in the revolving loan fund in arrears, and instances where board approval was not documented for tax releases and refunds. The audit also noted FICA withholding had not been applied correctly to retirement contributions and that some county checks lacked required pre‑audit verbiage.

The report included financial highlights: total general fund balance of $16.2 million, cash in the general fund of $11.056 million, an unassigned fund balance of $3.3 million (about 11% of expenditures), and general obligation bonds of roughly $12.7 million. Adams said receivables tied to the county high‑school project had inflated restricted balances for FY23 and that collection of those receivables in FY24 should restore previously reported percentages.

Commissioners asked questions about specific items. One commissioner queried a rise in investment earnings; the auditor attributed that change to higher interest rates in the period reported. Finance staff explained part of the overspending reported for the sheriff’s department and fleet management was the result of a change in GASB lease accounting standards that was not anticipated when the FY23 budget was prepared.

The board unanimously approved a motion to accept the audit. Motion by Commissioner Smith; second by Commissioner Rose; all in favor. Auditors reminded the board that staff must prepare and submit a response to the Local Government Commission within 60 days and that corrective work on accounting processes is expected to reduce findings for the June 30, 2024 and 2025 audits.