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Central Pacolet auditor issues clean opinion, resident urges public review and tighter controls
Summary
An independent audit gave Central Pacolet an unmodified opinion but flagged two internal-control findings; resident Kim Gesler asked the council for a public meeting and clearer financial practices, including GAAP adherence and oversight of a nonprofit partner.
An independent audit of Central Pacolet’s finances delivered an unmodified (clean) opinion while listing two internal-control findings and about a dozen proposed adjustments, the auditor told the town council.
"We audited the financial statements and issued an unmodified opinion," said Foster Heman of Love Bailey and Associates, who presented the audit and said the town has roughly seven months of cash on hand and positive operating income for the past four years. Heman said the audit identified two findings related to bank reconciliations and general ledger deficiencies and included management suggestions to tighten month-end reconciliations.
The presentation prompted a public comment from resident Kim Gesler, who urged greater transparency and asked specific questions of the council: whether the town maintains a strategic financial plan, whether staff — including the town administrator — are trained to use the town’s Sage accounting software to produce monthly cash-flow and quarterly budget-variance reports, whether the town follows generally accepted accounting principles (GAAP), and whether Packlet Threads, a local nonprofit that receives town funds, was included in the audit and maintains written internal controls. "A strategic financial plan would show past trends…so finances can be analyzed when planning future budgets," Gesler said.
Heman said the audit report’s final pages list internal-control findings and recommended changes; auditors, he noted, remain independent and therefore make management suggestions rather than implementing fixes. Town staff agreed to include the audit memo in the meeting minutes for public access and follow up on the citizen’s questions.
The audit packet presented summary figures, including operating revenues of about $1.9 million and operating expenses near $1.7 million for the year (net operating income roughly $260,000). Heman described capital outlays as driven by grant timing and noted restricted balances tied to grants and hospitality funds. He recommended tighter monthly reconciliation processes to address the findings.
What happens next: Councilors asked staff to publish the audit materials and suggested scheduling follow-up (a public meeting or hearing) so residents can review the findings and ask questions. The council did not take a formal vote on new financial policy at the meeting.
