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Greene County receives clean FY2024 audit, auditors note accounting adjustments and two material weaknesses
Summary
External auditors delivered an unmodified (clean) opinion on Greene County's FY2024 financial statements and reported two material weaknesses tied to prior-period adjustments and timing errors; the board approved the audit.
External auditors for Greene County told the Board of Commissioners on Monday that they had issued an unmodified (clean) opinion on the county's fiscal year 2024 financial statements but identified two material weaknesses and several required adjustments.
Leanne Baubasala, audit director at Malden & Jenkins (the audit firm engaged by the county), told the board the auditors issued a clean opinion on the basic financial statements and clean opinions for the federal and state major programs they tested, including Medicaid, SNAP (food-stamp) cluster, the aging cluster, the need-based lottery program and the state capital infrastructure program (SCIP).
Baubasala said auditors identified two material weaknesses. The first stemmed from prior-period reporting adjustments tied to new guidance on accounting for opioid settlement funds; auditors explained the county must recognize revenue early and record a corresponding receivable, producing a prior-period adjustment. The second group of material weaknesses involved capital-asset reporting, including reclassification of items between funds and corrections to whether costs should have been capitalized or expensed.
The auditors also flagged current-year timing issues in revenue and expenditure recognition. Baubasala said the county had already posted corrections for the prior-period items and that management had prepared a corrective action plan for the remaining findings.
The presentation included financial performance indicators from the North Carolina Local Government Commission (LGC). The auditors noted three items requiring a written response to the LGC within 60 days: a negative operating net income metric in the county's utility fund, a budget violation related to debt-service expenditures (including leases recorded as debt under new standards) and the material weaknesses described above. Baubasala said the findings had been addressed in management's corrective-action plan as appropriate.
Commissioners asked no substantive follow-up questions during the presentation. A motion to approve the audited financial statements was made, seconded and approved by voice vote.
The transcript does not contain roll-call vote counts; the commissioners were recorded as voting by voice and the chairman announced the motion carried.
