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Auditor issues unmodified opinion; Lincoln County general fund balance rose $3.3 million
Summary
Martin Starnes and Associates presented the county's fiscal year 2024 audit, reporting an unmodified opinion, a $3.3 million increase in the general fund balance, and one significant deficiency in the Medicaid cluster tied to a clerical eligibility entry error.
Martin Starnes and Associates presented Lincoln County's audited financial statements for fiscal year 2024 at the Dec. 10 Board of Commissioners meeting, reporting an unmodified opinion and several changes in fund balances.
"We issued an unmodified opinion," said Jill Vang of Martin Starnes and Associates, explaining that the opinion means the financial statements are fairly presented in conformity with generally accepted accounting principles. The auditor reported a $3.3 million increase in the general fund balance (6.4%) and a $854,000 increase in the solid waste fund net position (21.3%). The available general fund balance was reported at $49.3 million, an increase of $3.7 million from the prior year; the available fund balance plus debt service equaled 85.62% of net expenditures, well above comparisons cited from similar units.
Vang said revenues rose 2.1% (about $1.4 million), driven by ad valorem taxes and interest earnings, while expenditures increased about 4.5% (roughly $2.6 million), led by general government, public safety and transportation. The audit tested four major federal and state programs: the Medicaid cluster, the COVID-19 state and local fiscal recovery funds, the NC lottery fund and the state capital infrastructure fund. The auditor reported one significant deficiency in the Medicaid cluster related to eligibility data-entry controls: a clerical transposition meant the income entered into the NC FAST system did not match the original documentation, although testing showed the person remained eligible.
Commissioners asked for clarification about the county's available fund balance and how it relates to capital needs. County staff said approximately $20 million of fund balance is earmarked for capital improvement projects, including the Franklin High School project; the board previously appropriated about $8 million to the Highlands School, and staff said those appropriations will reduce the available fund balance in future audits.
No formal action was taken on the audit report at the meeting beyond the presentation and questions. Commissioners praised the county's finance staff for timely submissions to the Local Government Commission and high tax collection rates.
The auditor noted the county had no negative performance indicators on the LGC data input sheet and thanked county staff for cooperation during the audit.
