Auditors give Davie County a clean opinion but note fund-balance change and a program timing issue

Cassie Wilson of Martin Starnes & Associates presented Davie County's fiscal year 2024–25 audit to the Board of Commissioners on March 2, reporting an unmodified opinion on the financial statements and completion of single-audit testing for five federal programs.

Wilson said the audit team issued "an unmodified opinion," the highest-quality opinion an auditor can give, and confirmed completion of federally required single-audit testing. She identified a cross-cutting significant deficiency related to the timing of a procedure for one program, and said the Department of Social Services had responded and the matter had been handled.

Wilson walked the board through the general fund and enterprise fund results, noting increases in both revenues and expenditures and explaining how restricted fund balance affects the Local Government Commission's (LGC) performance indicators. She reported an available fund balance of $18,491,961, down from the prior year, and said the LGC examines the percentage of available fund balance relative to net expenditures when comparing units of similar size.

County staff said the water and sewer enterprise fund had planned operating deficits that triggered an LGC performance indicator; Wilson said the fund still showed positive cash flow from operations despite planned operating expenses exceeding operating revenues for the year.

Robin (finance staff) and county manager Barnett were present to answer questions; Barnett said the county would provide the financial statements and management's discussion and analysis to the commissioners for review. The board did not take formal action on the audit during the meeting.

The presentation concluded with Wilson thanking county staff and offering to answer further questions after commissioners had time to review the financial statements.