Malden & Jenkins presented a preliminary FY2024–25 audit to the Halifax County Board of Commissioners on Jan. 5, reporting a planned unmodified (clean) opinion and no current‑year audit findings but highlighting several items for the board’s attention.

Auditor Tesla Plitz said the final federal compliance supplement (delayed by the federal government shutdown) has pushed the audit’s formal deadline to Feb. 12; the firm expects finalization this month. Plitz identified several state and federal programs tested this year — Medicaid, the Social Services Block Grant, the Coronavirus State and Local Fiscal Recovery Funds (ARPA) and lottery funds for school construction — and noted preliminary totals in the draft annual comprehensive financial report: roughly $43.4 million in state funding (largely lottery proceeds) and about $10.6 million in federal funding.

Key items the auditor raised:
- Clean opinion: The firm said it will issue an unmodified opinion and had no findings as of the presentation.
- Past audit adjustment: A past audit adjustment of $288,000 related to capital in‑progress items that should have been capitalized in a prior year was disclosed; the auditors adjusted the current year to correct this.
- Water fund liquidity: The water enterprise fund showed negative net operating cash flows for the year (operating loss of roughly $1.2 million; after adjustments and debt service the computed indicator was negative $1.4 million), triggering state Local Government Commission performance indicators of concern. The auditors recommended the board review water‑fund operating revenue and expenses and consider rate adjustments or other steps.
- Minutes and documentation: Plitz asked that approved board minutes be uploaded promptly (approved minutes since March 2025 were not available for review) because those records support approvals of grants, leases and other matters that auditors examine.

Board response and next steps: Commissioners asked for clarifying detail on the programs tested, the water‑fund calculations and the $288,000 past adjustment. The auditor offered to return with finalized reports and additional explanation once the federal supplements arrive; the board agreed to receive a final presentation. Finance staff will work with auditors to provide the requested documentation and to follow up on water‑fund indicators.