Auditors from Thompson Price Scott & Adams presented Edgecombe County's FY2025 audit and told commissioners that several financial indicators warrant attention, including a decline in unassigned fund balance and a finding related to Water District 4's revenue bond covenant.

Hunter Wiseman, the auditor who presented the AUC 260 letter to governance, said the county adopted GASB Statement 101 during the fiscal year and that the firm identified standard audit risks such as management override of controls and improper revenue recognition. "We are not aware of any uncorrected material misstatements in the financial statements, and we're pleased to report no disagreements with management," Wiseman said.

The audit comparison over five years shows the general fund balance declined to $28,600,000 in 2025 from $31,600,000 in 2024. Unassigned fund balance fell to $9,900,000, representing 12.13% of general fund expenditures, down from 19.67% the prior year. Wiseman noted operating results before other financing included a general fund loss of $2,700,000; the Water and Sewer Fund had a loss of $300,000, and the Solid Waste Fund had a loss of $785,000.

Wiseman also highlighted a finding (2025-1) relating to the revenue bond covenant for Water District 4 and told the board the Local Government Commission will not initiate follow-up communications; the board is responsible for responding to identified issues within 60 days of the presentation. "We do have one item which the board will need to respond to...which relates to the bond covenant on Water District 4," he said.

On revenues and debt, the report lists ad valorem taxes as the largest General Fund revenue source ($39,400,000) and total levy amount of $34,200,000; the county's property tax rate was $0.89 per $100 of valuation, and the overall property tax collection rate was 94.29%, down from 96.03. The auditor summarized debt as including governmental installment purchases of $17,800,000, limited obligations and revenue bonds among other items.

County management responded to the audit. Miss Barfield thanked county staff and auditors, introduced finance staff and said "our financial reporting and controls overall are good," while urging discipline to rebuild unassigned fund balance toward the board's policy target (she cited 15% as the target the board would like to see). Joseph Maganga, Lisa Warren, Brandy Edmondson, Kimberly Myers and Shanice Battle were recognized for their roles in preparing the audit materials.

The board did not raise substantive audit questions during the presentation and the chair thanked staff for the timely completion of the audit. The auditor reminded the board to address the finding on Water District 4 within the 60-day response window required by the AUC 260 process.

Next steps: the board must prepare a written response to the audit finding and take any corrective steps needed to demonstrate covenant compliance or submit a plan to the appropriate oversight body within 60 days of the presentation.