Independent auditors issue clean opinion; LGC flags cash‑flow and asset‑ratio concerns for water and wastewater funds

An independent audit presented to the Anson County Board of Commissioners concluded with an unmodified opinion on the county’s financial statements but identified two items that require responses to the Local Government Commission (LGC).

Auditor representatives said implementation of a new accounting standard changed presentation of compensated absences and produced a restatement in government‑wide statements but did not affect the general fund. "We issue an unmodified report, which is a good report," the auditor said during the presentation. Key figures from the audit: total general fund balance approximately $28.7 million; unassigned fund balance about $8.48 million (21.2% of expenditures); total general fund expenditures about $39.99 million.

The two items flagged by the LGC were (1) an operating net loss in the water and wastewater funds — a cash‑flow concern — and (2) a low capital asset condition ratio in those funds, meaning accumulated depreciation exceeds 50% of total assets. The auditor said a plan and evidence (for example, an engineering study or a schedule of repairs and projected cash flow improvements) will satisfy the LGC’s requirement that the county show it is addressing the issues.

County manager and staff said they are working on an asset management plan, that water and sewer rates have been increased in recent fiscal years, and that a planned water plant filtration upgrade should help improve metrics when completed later this year.

The board asked staff to prepare the LGC response with an asset management plan and other documentation of steps the county is taking to address the cash‑flow and asset condition concerns.