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FY25 audit finds $1.4 million sanitary‑district deficit, four findings for Charles City County
Summary
A remote auditor told the Charles City County Board that the FY25 audit shows a general fund balance of $8.4 million but a $1.4 million net deficit in the sanitary district and four findings, including a material weakness in audit journal entries; the board discussed corrective steps and follow-up.
A remote auditor presented Charles City County’s FY25 comprehensive financial report and flagged a $1.4 million net deficit in the Sanitary District and four formal findings requiring corrective action.
"General fund end-of-year balance: $8.4 million ($4.3 million unassigned/discretionary)," Aaron Hawkins of Robinson, Farmer, Cox (RFC) said during a remote presentation of the audit highlights. Hawkins summarized that the Sanitary District utility fund has a net deficit of $1.4 million and an unrestricted deficit of $5.3 million. He also reported that General Fund expenditures exceeded appropriations by about $800,000 ($26.8 million actual vs $25.9 million budget).
RFC identified four findings: (1) a material weakness stemming from a high number and dollar amount of required audit journal entries, though improved from prior year; (2) inadequate reconciliation of property tax receivables; (3) a state‑compliance discrepancy involving the public service corporation property tax levy; and (4) failure to provide quarterly confirmation of county deposit balances with the state. The auditor recommended expanded pre‑audit work, regular tax reconciliation reporting, system upgrades for property assessments, a written credit‑card policy, and EDA accounting corrections.
County Administrator Keith C. Rogers told the Board staff would expand pre‑audit work and implement system and process upgrades to address property assessment accuracy, establish regular tax reconciliation reporting, and institute credit‑card receipt controls. Rogers also noted the FY25 Comprehensive Financial Report will be uploaded to the Auditor of Public Accounts and the county website as part of statutory compliance.
Vice‑Chairman Ryan Patterson asked for clarification about the primary challenge affecting the forensic audit and requested identification of the EDA bookkeeper so he could direct follow‑up questions; the Board also discussed outstanding data‑center items tied to tangible personal property tax and permit fees. Chairman Byron Adkins summarized the County’s three financial priorities and thanked agencies for emergency response during winter storms.
The Board did not take a final vote tied to corrective actions at the meeting; auditors’ recommendations and planned corrective steps were discussed and assigned to county finance staff for implementation and reporting back to the Board.
