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County accepts audit response after late filing, pledges monthly reports and daily reconciliations
Summary
County Manager David Cotton told commissioners that the FY 2024–2025 audit identified lease-accounting, late submission, and bank reconciliation issues; the Board approved a corrective action plan including daily reconciliations, an independent consultant review, monthly financial reports, and quarterly audit updates.
County Manager David Cotton presented Cleveland County’s corrective response to the FY 2024–2025 audit, telling the Board that three issues rose to the level of financial performance indicators of concern: compliance with GASB Statement 87 on lease accounting, a late audit submission tied to delays reconciling 31 bank accounts, and reconciliation delays generally. Cotton said the county has corrected the lease accounting entries and has implemented procedural changes to prevent recurrence.
Cotton outlined corrective actions including daily reconciliations in addition to monthly reconciliations, engagement of an independent consultant through the North Carolina Association of County Commissioners to review financial processes, and a plan to provide monthly financial reports to the Board and quarterly audit-status updates in public meetings (the first quarterly update is scheduled for the Board’s second May meeting). The Board voted to approve the audit response plan for formal submission to the State Treasurer’s Office and the Local Government Commission; Chairman Kevin Gordon said the delay was unacceptable and directed timely public release of the consultant report once reviewed.
