Auditor reports $3.4M surplus in FY25, flags recurring internal-control deficiency

Michael Lupton of Robinson Farmer Cox Associates presented the county’s fiscal-year-2025 audit for the period July 1, 2024–June 30, 2025. He reported governmental fund assets just under $25 million, about $18 million in cash and cash equivalents, a general fund revenue total of roughly $28.1 million against $24.7 million in expenditures and a net surplus around $3.4 million for the year. After transfers the county reported an ending fund balance of approximately $9.6 million and an unassigned fund balance of $8.4 million.

Lupton told the Board the audit included required assessments of internal control and that auditors again identified a significant deficiency related to material audit adjustments for the year ending June 30, 2025—the same issue noted in the prior year. He also described Uniform Guidance single-audit testing of three programs (public safety, COVID-19 Recovery Funds, and the Special Education Cluster) and said those audits “did not result in any compliance issues noted.”

Board members asked for clarification on fund balance composition and capital fund changes; Lupton and staff pointed to capital project activity and transfers as drivers of the reported changes. No formal action was taken at the work session on audit acceptance; the presentation was informational and auditors noted the need for management attention to recurring control weaknesses.