Person County accepts audited FY2025 financial report; auditors flag $220,000 insurance-fund violation

The Person County Board of Commissioners on Feb. 17 accepted the county's comprehensive annual financial report for the fiscal year ended June 30, 2025, following a presentation by the county's external auditors.

Hunter Weisman, audit manager for Thompson Price Scott Adams, told the board the audit was completed 'in conformity with government auditing standards and the uniform guidance' and that the firm was "not aware of any uncorrected material misstatements in the financial statements." He also said the audit identified two notable findings, including a prior-period correction for school construction balances and a budget violation of approximately $220,000 in the insurance/internal services fund.

Weisman summarized the practical accounting impacts: "There were 2 new GASB statements adopted during the year, GASB statement number 101 for compensated absences, and GASB statement number 102, certain risk disclosures." He further explained that the prior-period restatement related to school assets led to a $5,000,000 adjustment to beginning balances for governmental activities.

The audit presentation also compared Person County's fund balance ratios to peer counties and noted that the county's unassigned fund balance equaled roughly 25.9% of general fund expenditures. The audit letter included required communications and asked the board to respond to the Local Government Commission on certain items within 60 days.

After a brief question-and-answer period about peer group comparisons and fund-balance trends, a motion to accept the previously presented audit passed by voice vote.

The board did not adopt new corrective actions on the record beyond accepting the report; the presentation indicated follow-up with county staff and the Local Government Commission will proceed in accordance with the auditor's report and statutory expectations.