Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the County Finance Audit topic
No spam. Unsubscribe anytime.
Cabarrus County audit: clean opinion; commissioners debate moving $23.6 million to Community Investment Fund
Summary
County auditors issued an unmodified opinion for fiscal 2024; commissioners discussed but did not vote on transferring approximately $23.6 million of unassigned fund balance into the Community Investment Fund, citing desire to retain flexibility while the 2025 budget deficit remains under review.
Cabarrus County officials received an unmodified audit opinion for fiscal year 2024 and reviewed fund-balance details at the Feb. 18 Board of Commissioners meeting. Auditor Matt Breyer of Martin Starnes and Associates told the board the county’s financial statements were “in accordance with GAAP” and that the audit included no material weaknesses or significant deficiencies.
The audit showed total general-fund balance of about $236 million and an unassigned general-fund balance of roughly $83 million. Accounting adjustments and commitments left an unassigned balance equivalent to about three months of operating expenditures (about 22% of annual expenditures), the auditor said. Revenues exceeded expenditures for 2024 by roughly $59 million; property tax revenue increased about 4% year over year.
Why it matters: Fund balance levels determine how much cash the county can deploy for capital projects without issuing debt, and how much it should hold as a reserve for economic volatility.
County staff and commissioners discussed moving the amount above the board’s 15% reserve policy into the Community Investment Fund (CIF) to finance capital and deferred-maintenance projects rather than borrowing. Finance Director Jim Howden said, per policy, transfers of unassigned funds above the 15% reserve threshold are typically moved to the CIF. Staff calculated the excess available for transfer at about $23,603,962.
Several commissioners urged caution. Chairman Meissmer said she would prefer leaving funds in the general fund to retain flexibility while the county finalizes its budget and resolves an approximately $7 million projected deficit. Commissioner Lindsay and another commissioner echoed that sentiment, saying it would be prudent to wait until the budget process concludes before moving the money into CIF.
No formal vote to transfer the funds occurred at the meeting; commissioners directed staff to retain flexibility and revisit the decision during the budget process. Finance staff confirmed there is no statutory deadline requiring an immediate transfer.
The auditors also reviewed major revenue and expenditure drivers: human-services spending rose about $6 million (reflecting increased federal and state grant activity), public safety spending rose roughly $8 million, and education-related current expense increased by about $7 million (mainly for Cabarrus County Schools). The auditors recommended commissioners and staff review fund assignments as part of the upcoming budget cycle.
The board thanked audit staff for their work and accepted the presentation for review; auditors encouraged commissioners to contact finance staff with questions as they examine the full annual comprehensive financial report.
The board moved on to other business after the discussion.
