Rocky Mount staff say fiscal 2024 audit nearing completion after staffing delays

Abdul Baloch, interim finance director for the City of Rocky Mount, told council members during the afternoon session that the city’s fiscal year 2024 financial audit has moved into its final phase after months of delay tied to staff turnover.

The audit, Baloch said, follows North Carolina law and must be submitted to the Local Government Commission (LGC) once the auditor’s final report is produced. “We have provided almost all the documentation which are required right now. We are in the final final phase of providing some of the documentation, which is, which they are requiring right now,” Baloch said.

Why it matters: the city depends on a completed audited financial report both for transparency and for regulatory compliance; missing deadlines can trigger extension requests and additional oversight by state authorities. Baloch told the council that initial testing by the external auditors did not begin until January because documentation was only provided late in the previous year, and that the city has been working to supply the auditors’ requested samples and supporting records.

Key details from the presentation: - Baloch said the audit process normally begins in May or June but that Rocky Mount’s work on the 2024 audit began in earnest in November–December after staff started preparing documentation. Auditing testing did not begin until January. - The auditors flagged potential items for management note or opinion including treatment of a loan tied to the Public Facility Corporation and New Markets Tax Credit related to the event center; Baloch said auditors agreed to treat the building as an asset for repayment purposes but that a management note is expected. - Accounts receivable balances, particularly utility receivables more than 90 days overdue, drew auditor attention; staff explained the city had previously combined multiple utility charges into single bills, which may have contributed to longer AR aging. Baloch said the city uses collection timelines (90/120 days then collections agency) and is reviewing write-offs and policy changes. - Capital asset categorization required rework, Baloch said, because some assets had not been classified or capitalized consistently with amortization schedules; staff have spent weeks reconciling those items in the trial balance.

Council response and timeline: Several council members and city staff thanked Baloch for his work. A council member asked whether a draft report could be expected; Baloch said he hoped to receive a draft or final report by the end of the month but could not give a definitive date. He said he expected to have more definitive answers at a staff meeting next week and would update City Manager Varney.

Regulatory process: When asked whether the auditors would seek an extension from state authorities if the audit could not be completed on time, Baloch said extensions are the responsibility of the external auditors to request from the appropriate authorities and that staff had not yet been informed of any extension request.

What’s next: Baloch and outside consultants will continue to assemble required supporting documents; staff expect at least a draft management report within weeks and will bring the auditors’ findings to council when available.