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Moore County accepts FY2024 audit; finance staff to submit response to Local Government Commission
Summary
Auditors delivered an unmodified opinion for FY2024 but noted a material weakness tied to prior‑period restatement on opioid settlement accounting and significant deficiencies in Medicaid documentation; the board accepted the audit and approved staff's recommended response to the Local Government Commission.
Malden & Jenkins presented Moore County’s FY2024 audit for the period July 1, 2023 to June 30, 2024. Auditor Leanne Bagesala told commissioners the county received an unmodified (clean) opinion on its basic financial statements and on two discrete component units. The county also received a Yellow Book (GAGAS) report noting one material weakness related to a prior‑period restatement tied to opioid settlement accounting.
Bagesala said the prior‑period adjustment included recognition of expected settlement revenue at the opioid settlement fund level ($419,000) and at the government‑wide level (approximately $10,500,000) under current accounting guidance, which resulted in a material weakness classification when restating prior‑period amounts.
The auditors also reported two significant deficiencies related to Medicaid eligibility documentation (two instances in a 60‑sample selection where relationship/household composition documentation was missing) and a second significant deficiency concerning timely reporting for the Rural Operating Assistance Program, attributed in part to staff turnover. Management indicated the exceptions were promptly corrected for the Medicaid cases.
Auditors highlighted Local Government Commission (LGC) financial performance indicators of concern, including a water/sewer asset condition ratio of 0.42 (LGC target 0.50). Finance Director Caroline Chong summarized department responses: corrected accounting entries, Medicaid refresher training for DSS staff to be completed by March 31, 2025, and procedural steps for timely monthly reporting of certain state program reports.
The board voted to accept the audit and approve staff recommendations and a response letter to the LGC, which must be filed within the code‑required timeframe. Commissioners thanked auditors and staff for their work and acknowledged that corrective actions are planned to address the findings.
