Berkeley County audit returns clean opinion; finance staff reports solid revenues, outlines 2026 budget calendar

An external audit of Berkeley County's fiscal year 2024 financial statements produced an unqualified opinion, and county finance staff told the Finance Committee the county's midyear finances remain on track.

Brandy Turbiville, audit manager with Thompson, Prescott and Adams, told the Finance Committee the auditors "are pleased to disclose that the county received an unqualified opinion or a clean report." Turbiville said auditors found no material weaknesses or significant deficiencies. The auditors did note one area for improvement: documentation and approvals for travel reimbursements and related backup.

Jennifer Henson, finance staff, said the audit was the first year the county worked with the current audit firm and that staff met requested deadlines and provided requested backup. Alan Milburn, county finance staff, opened the audit discussion and introduced budget staff who will support the next budget cycle.

The audit report summarized the county's fiscal position at June 30, 2024. The report lists the general fund balance at about $105,000,024 and general fund expenditures for 2024 at about $111,000,000; the audit memo cautioned that total fund balance is not the same as funds available to spend because portions are restricted or committed for specific purposes. The auditors and staff highlighted growth in investment interest income as a significant revenue driver in 2024 and cited increases in property tax receipts compared with the prior year.

The audit firm also presented a five-year view showing trends in fund balance, revenue sources and debt. The report lists total county debt at about $304,000,000 at year-end 2024, with roughly $203,000,000 tied to business-type activities (water, sewer and solid waste). The auditors said business-type activities account for about two-thirds of the county's outstanding debt.

Henson presented the county's second-quarter financial report. Collections were reported "right on target," she said, noting the January tax deadline and continued steady interest income. Henson told the committee that an allocation of $38,800,000 for the courthouse has been committed from the fund balance and therefore reduces the otherwise reported year-end fund balance.

Wendy Weaver, Berkeley County Water and Sanitation staff, reported a year-over-year increase of about $6,700,000 in water and sewer revenue for the first six months; she said rate and service charge revenue rose by about $1,700,000 and that connection fees remain steady but that some second-half receipts remain outstanding. Weaver reported nearly $13,000,000 in net revenue over expenses in the water and sewer operating results as of Dec. 31, 2024, and said about $18,000,000 was transferred to a repair-and-replacement (R&R) fund for future capital projects.

Alan Milburn reviewed the 2026 budget development timeline with the committee. Key dates presented included a tentative March budget workshop with elected and appointed officials, an April 28 council meeting for the budget's first reading (title only), a mid-May supervisors' workshop (tentative May 12), May 27 for second reading, and a targeted June 23 council meeting for the final reading and adoption.

During committee discussion, members asked auditors about testing procedures. Turbiville described sampling procedures used for tax and water/sewer collections testing, expenditure sampling, debt and fixed-asset verifications and federal-award program testing (the auditors said they tested American Rescue Plan Act funding and a Community Development Block Grant–type urban entitlement program and found no compliance issues).

The Finance Committee voted to accept the FY2024 audit results as presented.

Looking ahead, Turbiville briefed the committee on a new Governmental Accounting Standards Board standard (GASB 101) related to compensated absences that will take effect in a subsequent reporting period and may change presentation of certain liabilities.

The presentation materials provided charts and tables showing fund balance composition, tax collection percentages over five years, and revenue and expense breakdowns by major program and fund type.