External auditor gives Orange County an unmodified FY2025 opinion, flags three material weaknesses

Andrea Nichols, manager with PB Mares, presented the county’s fiscal year 2025 external audit at the Feb. 10 Board of Supervisors meeting, summarizing the annual comprehensive financial report, compliance and single-audit report, and required communications to the board.

Nichols said auditors issued an "unmodified" opinion on the county’s financial statements — the most favorable standard audit opinion — and explained that readers should see the management’s discussion and analysis for narrative context. She highlighted that GASB 101 was implemented this year for compensated absences, which affects year-over-year comparability, and noted GASB 103 will affect next year’s presentation.

On internal controls and compliance, Nichols reported three material weaknesses and one significant deficiency; the details of those items are contained in the compliance and single-audit report. She said the audit found no federal compliance findings that would be included in the single-audit opinion. Nichols also noted one delay in receiving information from the school board during the audit process and pointed the board to exhibits summarizing audit adjustments and the management letter for items that warrant attention but did not change the auditor’s opinion.

Board members had no immediate questions. Nichols thanked the county finance team and concluded by noting the substantial work involved in producing the reports and offering to answer follow-up questions.