Audit: Ocean Isle Beach posts $2.28 million surplus, strong reserves for storm response

Austin Eubanks, audit manager at Thompson Price, Scott & Adams, presented the Town of Ocean Isle Beach fiscal year 2023–24 financial audit, saying the firm provided "reasonable assurance that the financial statements are free of material error." The audit covered the year ending June 30, 2024.

The audit showed total general‑fund revenues of $11,513,000 and expenditures of $9,235,000, producing a positive net change of $2,277,000. Auditors reported an unassigned general‑fund balance of $5,400,000 — about 41% of expenditures — above the Local Government Commission benchmark cited during the presentation (34% for a town of this size). Eubanks noted the town's tax collection rate was 99.93% for the fiscal year.

Auditors reported the town’s top revenue sources were ad valorem taxes ($3,788,000), sales and services ($2,600,000), and permits and fees ($2,591,000). The largest general‑fund expenditures were public safety ($3,751,000) and general government ($2,600,000). Proprietary funds (water and sewer) ended the year with a combined positive change in net position; the sewer fund reported operating revenues of about $1,600,000 and a positive operating income after depreciation.

Eubanks told the board there were no significant internal control deficiencies, no disagreements with management, and no irregularities or illegal acts identified during the audit. He described the audit work as performed under Government Auditing Standards and OMB Uniform Guidance.

Mayor and council members discussed reserve policy in light of the town’s coastal exposure; board members said strong reserves allow the town to act quickly after storms without waiting for federal reimbursements. No board action was required; the presentation closed with the auditor taking questions.