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Halifax County finance department honored for 25th consecutive year; independent audit issues clean opinion, flags water fund cash-flow concern
Summary
Halifax County’s finance department received the Government Finance Officers Association certificate of achievement for financial reporting for the 25th consecutive year. County auditors issued an unmodified (clean) opinion on the FY 2023–24 financial statements but noted a cash-flow indicator of concern for the county’s water enterprise fund.
Halifax County’s finance department received the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting for the 25th consecutive year during the county’s Dec. 2 meeting.
County Manager Dia Benton and Finance Director Mary Duncan presented the recognition. Duncan told commissioners the award reflects the department’s effort to prepare an annual comprehensive financial report that is “organized, readable, and transparent.” The board presented a plaque and recognized staff members in the audience.
The county’s independent auditors then delivered the fiscal year 2023–24 audit. Tim Lyons, the lead auditor, told the board the firm will issue an unmodified opinion — an accounting term for a clean opinion — on Halifax County’s basic financial statements for the year ended June 30, 2024. Lyons said the county’s statements “are fairly presented in all material respects.”
Lyons highlighted several financial metrics the board should note. The county reported a decrease in its general fund balance for the year of approximately $6.5 million; however, he said the county’s fund balance remains above state-required minimums and aligns with Government Finance Officers Association recommendations. When combining unassigned fund balance with statutory reserves, Lyons said the county’s fund balance equates to about 165 days of expenditures.
The auditors also reviewed enterprise (business-type) funds. Lyons reported both the solid waste and water funds produced positive cash flows from operations overall, but he flagged a financial performance indicator of concern for the water fund. The details provided to commissioners included: - Reported federal expenditures of approximately $9,000,000 and state funding of approximately $5,800,000 in FY 2023–24. - The water fund’s operating net loss for 2024 was reported at about $72,000; depreciation added back to that figure was roughly $1,600,000. When required adjustments and debt service are included, the Local Government Commission (LGC) formula produced a cash-flow indicator that the auditors said will prompt LGC monitoring and require a response from the county.
Commissioner Thomas Barrett asked whether the calculations had changed year to year; Lyons said the methodology was consistent but pointed to inflationary pressure on operating costs (chemicals, utilities and related supplies) and the challenge of raising rates quickly enough to cover those costs.
County Manager Benton told the board that staff will present a deeper dive into fund balance at the board’s upcoming retreat and will continue to monitor the enterprise funds. Lyons and other auditors noted there were no audit findings in the report.
On a motion by Commissioner Webb, seconded by Commissioner Silver, the board voted unanimously to accept the fiscal year 2023–24 audit report.
The board also accepted the GFOA recognition for the finance department and publicly thanked staff for their multi-decade record of award-winning reporting.
