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County audit returns clean opinion; auditors note filing delay and budget reporting item
Summary
Auditors reported an unmodified (clean) opinion on David County's FY2025 financial statements, citing a $73.3 million net position, a $7.3 million year-over-year decrease tied to hurricane losses and a new sick-leave liability standard, and two performance items requiring response.
David County received an unmodified (clean) audit opinion for the fiscal year ended June 30, 2025, auditor Tara Fenner told the David County Board of Commissioners on March 2.
Fenner, an audit partner with Blackburn Children's and Stag, said the county's net position was $73.3 million and that “about $45 million was invested in capital assets.” The audit report also shows the county ended the year with $52.7 million in total capital assets. The audit recorded a decrease in net position of about $7.3 million, which Fenner attributed in part to hurricane-related losses and to a recently issued accounting standard that requires recognizing a liability for accrued sick leave.
The audit firm tested several major federal and state programs during the year, including the Medicaid assistance program and American Rescue Plan Act (ARPA) funds. Fenner said federal expenditures totaled $6.9 million and state expenditures totaled $2.7 million for the year. She also described debt activity: the county made $1.1 million in debt payments and took on a $1.9 million cash-flow loan that, because of reporting rules, contributed to the county meeting state single-audit thresholds.
Fenner said the audit produced no reportable findings for the financial statements or for the federal and state grant testing the auditors performed. She also described two performance-related matters that will require responses: a delay in filing due to a delayed compliance supplement for grant testing, and a budgeting/reporting difference tied to moving certain lease payments from departmental functions to debt-service reporting. Fenner said she had provided draft responses for the county to include with submissions to the Local Government Commission.
Board members asked follow-up questions about the cash-flow loan and its terms; the auditor confirmed the loan was interest-free and noted its timing affects audit thresholds. The exchange continued after the portion of the transcript provided.
The county will include the auditors' recommended responses with its required filings; no formal board action on the audit was recorded in the provided transcript.
