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Goldsboro receives clean audit opinion; LGC flags water/sewer asset ratio requiring response
Summary
Mazars auditors told the council the fiscal-year statements for 06/30/2025 will receive unmodified opinions and found no material weaknesses, but the city's water-and-sewer capital-asset ratio (0.32) is below the LGC threshold and requires a written response by Feb. 13, 2026.
Goldsboro's independent auditors presented the city’s fiscal-year financial statements for the year ended June 30, 2025, and reported unmodified (clean) opinions on both the financial statements and the city’s compliance with major state programs.
Chad Cook, audit director with Mazars, told the council the audit found no significant deficiencies or material weaknesses in internal control. "We're issuing unmodified opinions on those financial statements," Cook said, and confirmed that additional required supplementary and statistical information included in the packet is not part of the auditor’s opinion.
Cook highlighted several financial metrics: the general fund balance rose to about $33.7 million with an available fund balance of roughly $25.6 million. He also noted that working capital in the utility fund has increased and that, on a budgetary basis, utility revenues climbed to about $25.8 million for 2025.
At the same time, Cook said the Local Government Commission’s (LGC) financial-performance screening flagged the city's water and sewer capital asset ratio at 0.32 — below the LGC threshold of 0.5 — which the LGC considers a performance indicator of concern. "That ratio is at 0.32... You have 60 days from the day that this is presented to you to respond to the LGC," Cook told council; the deadline calculated from the meeting date is Feb. 13, 2026.
A member of the public raised questions during public comment about the audit packet and whether the city's response to the LGC will be fully transparent. The city manager and audit director acknowledged the public comment and said staff would prepare the formal response and continue noting capital-investment plans (for example, the city’s CIP) that aim to address aging infrastructure over time.
Council members thanked the finance team and auditors for meeting the timeline and recognized the work required to implement new accounting standards. The presentation concluded with staff agreeing to provide printed copies of the report on request and to return to council with any follow-up correspondence required by the LGC.
Next steps: city staff will draft and submit the required LGC response, and finance staff will continue to integrate capital-replacement plans into future budgets.
