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FY2025 audit: Cleveland County audit was late; auditors flag reconciliations and process fixes
Summary
An independent audit for Cleveland County found the FY2025 financial statements were submitted roughly one month late and identified unreconciled accounts and process weaknesses; auditors said the county is expected to receive a clean opinion but must file corrective actions with the Local Government Commission.
Auditor Tim Nyguen of Thompson, Price, Scott, Adams & Co., P.A. (TPSA) told the Cleveland County Board of Commissioners that the FY2025 audit was issued approximately one month after the extended deadline and therefore is officially late. He said multiple reconciliations were not completed on time, contributing to the delay, though the firm expects to issue a clean audit opinion for the fiscal year ended June 30, 2025.
Nyguen outlined significant risks and audit findings, including management override of controls (a presumed audit risk), improper revenue recognition as a risk area, unreconciled cash and subsidiary ledger balances, and specific Medicaid testing findings. He also described procedural changes required by the Local Government Commission (LGC), including a new data-input worksheet and a 60-day requirement for the county’s written response to identified Financial Performance Indicators of Concern (FPICs).
Finance Director Philip Steffen told the Board that turnover in the Finance Department and misunderstandings with the auditors contributed to the delayed submission; he said finance staff believed requested reports were submitted on time but that some items were not received in a usable form. Steffen committed to preparing a written corrective action plan and to filing the required LGC response within the 60-day timeframe.
Chairman Kevin Gordon and members of the Board pressed for clearer timelines and improved year-end processes; Commissioners requested a formal corrective action plan. Commissioner Deb Hardin said the circumstances suggested shared responsibility between the County and the audit firm, while Nyguen reiterated that TPSA could not complete the audit without a complete, usable trial balance, which the firm did not receive until February 11, 2026.
The Board did not take a formal vote on the audit presentation itself but directed Finance to prepare the documented corrective actions to satisfy LGC requirements and internal controls reporting deadlines.
