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Brevard audit: clean opinion overall, LGC flags $66,000 health-insurance variance
Summary
Independent auditors reported an unmodified (clean) opinion on Brevard's FY2024-25 financial statements and no material compliance findings in single-audit testing, but the Local Government Commission flagged a roughly $66,000 budget variance in the city's health-insurance internal-service fund.
An independent audit of Brevard's city finances for the year ended June 30, 2025, received an unmodified (clean) opinion and no material findings, the council heard Feb. 2.
"We issued an unmodified or a clean opinion on the 06/30/2025 financial statements of the city," auditor Chad Adams said, noting auditors also reported no material weaknesses in internal control over financial reporting and no material noncompliance in grant compliance testing.
Why it matters: a clean opinion means the auditor believes the financial statements fairly present the city's finances under generally accepted accounting principles. The audit included a single-audit review of federal- and state-passed grant programs — specifically ARPA funds passed through the state Department of Environmental Quality and a North Carolina General Assembly special appropriation tied to wastewater treatment upgrades — and found no compliance findings.
Context and flagged item: Adams told the council the Local Government Commission reported one financial-performance indicator of concern. According to the auditor, expenditures in the health-insurance internal-service fund exceeded budget appropriations by about $66,000 on an approximately $1.8 million budget. "We did not consider this a finding for purposes of the audit," Adams said, characterizing it as a likely one-off rather than a systemic budgeting failure, but he said reporting to the LGC was required.
Council reaction: Councilmembers thanked the finance team and auditors, and several said rising health-care costs will be an important consideration in the upcoming budget process. City Manager Wilson Hooper and staff noted the full audit report is posted on the city's website for anyone seeking detailed schedules and workings.
Next steps: The auditor said the LGC has accepted the audit and the city awaits any substantive comments from the commission; council members asked staff to bring cost- and benefits-related information about employee health-care costs during budget deliberations.
