County auditor presents draft clean opinion; finds late filings and technical compliance issues

Madonna Stafford of Carr Riggs & Ingram told the Currituck County Board of Commissioners on April 20 that the countyis expected to receive an unmodified (clean) opinion on its June 30, 2025 financial statements but that the audit was presented in draft form and not yet finalized.

Stafford said the audit engagement covered the countywide financial statement audit and compliance testing of major federal and state programs and that, so far, there are no expected changes to the numbers or findings she presented. "We intend to issue an unmodified opinion on the financial statements for June 30, 2025," Stafford said.

Why it matters: the presentation summarized the county's fiscal position and identified items the board must address promptly. Stafford reported the county's net position rose by $40.3 million year over year (about $37.4 million in governmental activities and $2.9 million in proprietary funds). Revenues increased roughly $10.7 million, with an estimated $8.2 million coming from property taxes; the general fund balance rose $9.4 million and unassigned general fund balance was reported at $48.1 million (about 72% of one yearexpenditures, a reserve level Stafford said equates to roughly nine months of operating capacity).

Audit findings: Stafford identified three reportable items the county must correct and document in a response to the Local Government Commission. First, the audit was submitted late, a noncompliance with N.C. G.S. 159-34A, attributed in part to staff turnover in the finance department. Second, a required EMMA (EMMA/secondary market) disclosure filing for limited-obligation bonds was delayed because the audit was not yet available; Stafford said an untimely EMMA filing can remain on record for five years and could affect bond reviews in limited circumstances. Third, a technical finding in the county's medical assistance program testing showed one of three contracts tested lacked required addenda; Stafford described the problem as a documentation defect rather than a questioned cost and said all costs tested were allowable and reimbursed under the program.

Board questions and next steps: Commissioners asked whether the findings carried penalties. Stafford said penalties are unlikely in most circumstances but noted the EMMA issue could have consequences for future bond ratings on a case-by-case basis; she emphasized that repeat late submissions are more likely to influence rating decisions. Stafford said the auditor expects to finalize and submit the audit within days and will return if anything substantive changes. The county must file corrective-action responses to the LGC within 45 days of audit submission.

The board will receive the final bound reports when the audit is submitted; Stafford said she will return to present any substantive revisions if necessary.