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Martin County audit shows a clean opinion and a large fund balance; water funds flagged by LGC
Summary
Auditor reported an unmodified opinion on the county’s June 30, 2025 financial statements and highlighted a $3.2 million increase in net position and an unassigned General Fund balance of about $19.5 million (56% of expenditures). The auditor also noted water funds were flagged by the Local Government Commission for liquidity concerns.
Martin County received an unmodified (clean) audit opinion for the fiscal year ending June 30, 2025, the county’s independent auditor reported March 20.
Madonna Stafford of Carr, Riggs & Ingram told the Board of Commissioners the auditors issued an unmodified opinion on the financial statements, while including an emphasis-of-matter paragraph related to two accounting changes: implementation of GASB Statement No. 101 (sick-leave accounting) and revised state guidance on revenue recognition for opioid funds. Stafford emphasized those changes required restatements of beginning net position but did not alter the auditors’ clean opinion.
The audit showed total net position increased by about $3.2 million to $53.4 million. Unassigned fund balance in the General Fund was approximately $19.5 million at year-end, representing roughly 56 percent of General Fund expenditures. Stafford said that ratio exceeds the county policy minimum of 20 percent and the Local Government Commission (LGC) benchmark, and gives the county reserves equivalent to roughly seven months of operations.
Stafford also highlighted program-level items: the county had no federal major program compliance findings (medical assistance was the only major federal program) and three state major programs reviewed with no compliance exceptions. She noted a $4.4 million decrease in General Fund revenues compared with the prior year, driven by one-time ARPA receipts in fiscal year 2024.
On utilities, Stafford said Water Districts #1 and #2 were again flagged in the LGC data-input worksheet for liquidity metrics: the quick ratio was about 0.26 (threshold 1.0) and unrestricted cash flow as a percent of expenditures was reported low. The county must submit a written response to the LGC explaining corrective actions. Stafford said the finance office would draft the response and present it for board approval before submission.
The audit and management letter were presented to the board; Stafford thanked county finance staff for their cooperation during the audit.
