Cramerton audit returns clean opinion; one significant deficiency requires LGC response

Martin Starnes & Associates presented the Town of Cramerton’s 2024 audited financial statements at the Nov. 19 workshop and issued a clean, unmodified opinion, indicating no material misstatements in the financial statements.

Audit highlights reported by Ms. Johnson included: General Fund revenues increased by $1.8 million (25%), driven by higher property tax revenue, permits, fees and intergovernmental revenue; expenditures decreased by $1.4 million (16%) largely because of a decline in capital outlay and debt service; total fund balance increased by $1.4 million (31%); and available fund balance by Town policy is approximately $1.5 million, or about 62.27% of expenditures (roughly eight months of operating expenses).

The audit identified one significant deficiency; the firm asked that the Town submit a written response to the North Carolina Local Government Commission (LGC) within 60 days, signed by a majority of the Board of Commissioners.

Town Manager Zach Ollis credited both revenue growth and cost‑saving measures for the surplus. He cited an example in which a water restoration project originally budgeted at $500,000 was completed for $5,000 through in‑house analysis and negotiations; that figure was presented by the Manager as an example of resourcefulness. The audit presentation otherwise noted a stable property tax collection rate and non‑material budgetary violations.

Board members thanked the auditor and Finance Director Michelle for the audit and asked no questions during the presentation; follow‑up questions were directed to Finance Director Michelle. The board must sign the required LGC response within 60 days to address the identified deficiency.

Next steps: Staff will prepare the Town’s response to the LGC and provide materials to the board for signature and any requested follow‑up.