Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the County Audit topic
No spam. Unsubscribe anytime.
Pender County posts clean FY2024 audit, LGC flags limited performance indicators
Summary
External auditors issued an unmodified opinion on Pender County’s fiscal 2024 financial statements but identified several performance indicators and compliance findings that require a board response to the Local Government Commission within 60 days.
Pender County officials received an unmodified (clean) audit opinion for fiscal year 2024 during the Board of Commissioners meeting Wednesday, county Finance Director Meg Blue and auditor Bao Tao of Martin Starnes & Associates told the board.
The auditors reported no material misstatements in the financial statements and highlighted a general fund total fund balance and several enterprise fund movements. The audit showed the county’s available general fund balance at about 50.5% of expenditures for 2024, down from the prior year; the solid waste fund showed improved liquidity and net position; and the combined water and sewer fund showed a decline in unrestricted net position tied to capital investments.
The audit also included a single-audit result for major federal programs: of six programs tested, findings affected the Medicaid cluster (an eligibility finding) and a regional economic reserve grant (a reporting finding); the remaining four major programs had no findings, the auditor said.
The Local Government Commission (LGC) performance indicators listed several items that the county must address in a written response signed by the board, the accounting manager and the finance director within 60 days. Those items include a statutory finding for an over-budget condition in the Pender Development Authority and a previously corrected finding relating to the finance officer’s bond coverage. The LGC also flagged two performance ratios for attention: the water/sewer quick ratio (below the typical threshold of 1.0) and a cash-to-expense ratio for the water/sewer fund (reported at about 5.6%, below an LGC concern threshold of 16%). The finance director said the county is awaiting proceeds tied to a $13 million loan package that will restore liquidity when received and that staff will submit the required LGC response explaining corrective actions.
Auditors certified that the county’s financial reports were submitted timely to the LGC and recommended review of the Management’s Discussion and Analysis in the front of the financial statements for detail on year-over-year drivers. Finance Director Meg Blue said the funding for several planned projects (parks, library design) and transfers to school debt service explain much of the change in fund balances. She confirmed the county would provide the full audit report electronically to commissioners on request.
Board members asked clarifying questions about specific ratios, timing of proceeds and next steps; staff said they will provide the LGC response and additional project-level detail in regular project updates.
