External audit: Wilson County earns clean opinion but must record custodial funds on county books

Robert Carter of Lee Allen Carter PC presented Wilson County’s FY2024–25 external audit to the court on June 22. The auditors issued an unmodified opinion, meaning the county’s financial statements are fairly stated under U.S. generally accepted accounting principles, but they reiterated a prior-year finding regarding custodial funds.

Auditors explained that custodial (agency) funds — bank accounts held for offices such as the tax assessor-collector and county or district clerks — process receipts and disbursements that are not currently posted to the county general ledger as separate custodial-account entries. Because those custodial balances total approximately $3.5 million on confirmations the auditor reviewed, the firm recommended that the county record the accounts on its books and reconcile monthly activity to the books of origination.

Carter also described audit adjustments made to opening balances and receivables, and noted the adoption of a GASB accounting pronouncement that increased the county’s reported compensated-absence liability. He commended county staff for timely cooperation during an unusually demanding audit and said no disagreements with management arose.

County staff said they plan a staged approach — recording custodial accounts and reconciling each fund in turn — and expect to post required entries before the next audit cycle.

The court received the audit and placed the report in the record; commissioners asked follow-up questions about steps to bring custodial funds onto the books.