County auditors issue clean opinion on FY25, note one material weakness and $17M accounting change
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Summary
External auditors issued an unmodified (clean) opinion on Forsyth County's FY25 financial statements, flagged one material weakness tied to prior grant revenue recognition, and said a GASB accounting change created a $17 million sick‑leave liability adjustment; the single‑audit remains open pending a federal compliance supplement.
Auditors told the Forsyth County Board of Commissioners on Dec. 15 that they issued an unmodified opinion on the county's FY25 financial statements, the highest level of assurance under government auditing standards.
"We issued an unmodified opinion," said the lead auditor, whose team includes Albert Ong and Emily Bennett. The auditor reported no uncorrected misstatements and said management corrected all items identified during the audit.
The firm identified one material weakness that had been self‑reported by finance before the audit began. The weakness related to recognition of grant revenues in prior years when bond proceeds were intended to be used first; as a result, liabilities were previously understated and a restatement was required.
The auditor also described a change in accounting principle from the Governmental Accounting Standards Board requiring the county to record a liability for accumulated sick leave. "This was a $17,000,000 adjustment," the auditor said, adding that the change reflects a standards update rather than an error by county staff.
On the county's single audit of federal programs, the auditor said federal guidance—the compliance supplement—arrived late this year, delaying completion of certain compliance procedures. "We just received it the day before Thanksgiving," the auditor said. He said the single‑audit report will be issued shortly and that any findings will be reported when identified.
County CFO Terry Goodman praised finance staff for preparing the comprehensive annual financial report and provided context for the operating results. He said the general fund experienced a net decrease of $7.8 million for the year, compared with an adopted budget projection that anticipated a $40.7 million reduction; management took proactive measures during the year to limit the drawdown, Goodman said, leaving a final general fund balance of $202.3 million.
The auditor advised the board that, because of the material weakness, the Local Government Commission expects a corrective action letter within 60 days outlining the county's remedial steps. No fraud, illegal acts, or going concern issues were identified during the audit, auditors said.
The board held questions on internal control distinctions and auditor reporting; the auditor explained that identifying a material weakness does not equate to an opinion on overall control effectiveness but flags a control that could allow material misstatement to occur and go undetected.
The county will receive the completed single‑audit and any related findings when federal compliance testing concludes.
