External auditors give Northumberland County ‘clean’ opinions, flag accounting system and school board items

External auditors from Robinson Farmer Cox told the Northumberland County Board of Supervisors that the county's fiscal year 2024 financial statements earned unmodified, or "clean," opinions on the financial statements, internal controls and compliance with federal programs.

Taylor Stover, partner in charge of the FY24 audit from Robinson Farmer Cox, told supervisors the audit covered the county's financial statements and VRS compliance and included Single Audit testing of federal programs (child nutrition, ARPA and ESSER). "We issued three unmodified opinions," Stover said, meaning no material misstatements or reportable compliance failures were found for the county-level audits or the federal programs tested.

Stover reviewed several key figures and recommendations: the county's net position decreased by about $3.15 million for FY24; current-year tax collections were 98.28 percent of the levy; the county increased its capital improvements fund after issuing a $5 million lease revenue bond; and the general fund's unassigned balance represented roughly 19 percent of general fund expenditures, above the Auditor of Public Accounts' 16.7 percent recommended minimum.

The auditors also highlighted matters the board and staff should address. Stover told the board that many balance-sheet accounts are not recorded fully in the county's RDA accounting system; instead, some assets and liabilities remain in manual ledgers maintained by the treasurer. That arrangement, he said, creates extra audit work and risks inconsistent reporting. "We recommend that the county record all accounts in the RDA accounting system to provide complete financial information to stakeholders," Stover said. The auditors also recommended monthly reconciliations between the school board and the county treasurer.

Stover noted specific issues at the school-board level: six of 25 employees tested had payroll contribution problems and there were census disagreements for two employees; the school board exceeded the local appropriation by about $1.1 million and two funds (county capital projects and the school operating fund) exceeded budgeted appropriations. Auditors also flagged that the school board did not enter its revenue budget into the RDA system during the year.

Board members pressed the auditor about timing: the audit fieldwork ran later than usual (final field work in early February), which delayed delivery to the county and complicates the budget calendar. Stover said delays stemmed from pre-audit consultant timing and his firm's competing obligations during busy season, and he apologized for the lateness.

The audit presentation concluded with the auditor's management-letter recommendations and offers to assist staff with follow-up. Supervisors thanked the auditors and had no formal objections recorded to the report at the meeting.