Durham County audit flags $2.5M fair‑market adjustment; board told to monitor trends

Scott Anderson, audit director for Cherry Bekaert, presented Durham County’s FY2023 Annual Comprehensive Financial Report and Single Audit to the Board of County Commissioners on March 25 and said auditors identified a $2.5 million fair‑market‑value adjustment that was evaluated “at a significant deficiency level,” though it was not reported as a significant deficiency. Anderson also discussed findings from the Single Audit and internal control communications.

The presentation laid out the audit team, scope and results, including corrected and uncorrected misstatements and qualitative aspects of accounting practices. Board members asked whether the adjustment constituted a material threat to long‑term solvency; Anderson replied the county should not be concerned about liabilities exceeding assets but should continue to monitor trends and liquidity. He also identified a notable increase in pension funding as a driver of higher spending.

Durham County Chief Financial Officer Tiffany Murray and Deputy CFO Crystally Wright were thanked by the Board for their work preparing for the audit. The presentation did not result in formal board action; it served as the Board’s receipt of the audit and a public discussion of audit findings and follow‑up steps.

The Board is scheduled to receive the County Manager’s Recommended FY2024‑25 budget on May 13, 2024; commissioners will then hold several budget work sessions before final adoption is expected June 10. The county’s finance office will continue to report on liquidity and pension funding as part of budget and audit follow‑up.