Bradley County audit: overall finances strengthen, healthcare center flagged for concern

County Mayor D. Gary Davis told the Audit Committee that Bradley County’s net position increased by $11,397,000 for the fiscal year ending June 30, 2025, and that the county’s unassigned fund balance stood at about 25% (approximately $13.6 million), above the 15% minimum policy.

The presentation, made at a committee meeting recorded April 22, 2026, noted the county maintained long-term credit ratings (Moody’s: AA2; Standard & Poor’s: AA) and reduced long-term debt by roughly $7.7 million during the fiscal year. Mayor Davis said the finance office recorded 24,965 general‑ledger transactions, entered 1,288 invoices and issued more than 7,000 warrants during the period. He also acknowledged one audit finding tied to an appointed department head and said corrective action had been taken before the audit was issued.

Milan M. Blake, chair of the Finance Committee, summarized a four‑year review showing the county’s primary-government net position rose from $55.8 million on June 30, 2022, to $91.7 million on June 30, 2025. Blake told the committee that while the school department’s net position increased to about $146 million over the same period, its year‑over‑year gains have slowed.

By contrast, Blake and the committee highlighted the Bradley Healthcare and Rehabilitation Center as a material concern: the briefing shows its net position fell from roughly $3.99 million in FY22 to about $2.06 million in FY25, a cumulative decline approaching 48 percent. The briefing also noted the center’s cash on hand fell from $2.1 million to about $556,000 and that an allowance for uncollectible receivables first appeared on its FY24 balance sheet.

Denny Collins, who serves on the healthcare center’s board, told the committee the center’s director and board chair are aware of the trend and have put measures in place to reduce expenses and pursue revenue improvements tied to Medicare and Medicaid reimbursements. Ellen Smith, Bradley County Schools finance director, agreed to review committee questions about why school revenue growth had slowed and report back.

The Finance Committee recommended follow-up before the next budget cycle, specifically requesting an operating statement and receivables‑aging report from Healthcare Center management. The Audit Committee also adopted its standard committee determination language concluding the financial statements appear fairly presented and that the independent auditors met professional standards.

Next steps recorded in committee minutes include the requested financial detail from the Healthcare Center and a committee review in advance of budget deliberations.