Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit topic
No spam. Unsubscribe anytime.
Council accepts 2024 audit with unmodified opinion; FEMA repairs and Main Street grant noted
Summary
Auditor reported an unmodified opinion on Blowing Rock's 2024 financial statements; the audit highlights a $1 million estimate for storm repairs expected to be FEMA-reimbursed and notes a $2.7 million cash receipt for Main Street water and sewer replacement.
The Blowing Rock Town Council formally accepted the 2024 audit presentation Tuesday after a review by auditor Hannah Leskovec of Scott, Adams & Company, who said the firm issued an unmodified opinion and raised no difficulties with management.
"The audit opinion is unmodified," Leskovec told the council, adding the firm had no significant estimate concerns and that a new GASB pronouncement (GASB 100) will change prior-period adjustment presentation. She pointed council to subsequent events in the financial statements, including damage from Hurricane Helene and a related $1,000,000 estimated cost of repairs that the town expects will be reimbursed by FEMA.
Leskovec also noted a $2,700,000 cash receipt the town received in July 2024 for Main Street water and sewer-line replacement, and she discussed several required communications and financial-performance indicators of concern (FPICs). The audit showed the water and sewer operating fund had an operating net loss (reported approximately $220,000) and that unrestricted cash in that fund was reported as 0% because of timing and the large receivable. Leskovec recommended the town review capital project funds and construction-in-progress to remove closed projects within 60 days as required.
Town staff and council discussed the timing of state reimbursement for the Main Street project; Town Manager Shane (last name not specified in the transcript) explained the town submitted its request in March and received funds in July, which affected the year‑end restricted/unrestricted cash presentation. The town manager praised Finance Director Tasha (last name not specified) for her work during a transitional year in the finance department and said available fund balance rose from about 28.9% to roughly 48% year over year.
Council members asked whether auditors noted internal-control weaknesses. Leskovec said assessing internal controls is typically outside the scope of a financial statement audit and no such matters were reported in the audit. Council also noted separate state reviews of internal controls related to the $4.8 million Main Street grant and expected a state report to follow.
After discussion, council approved acceptance of the audit and thanked staff and the audit team for completing the work on schedule.
