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County audit returns unmodified opinion but flags bank confirmation lapse, notes utility billing error
Summary
Robinson Farmer Cox reported an unmodified audit opinion for FY25 but identified one county finding for failing to confirm quarterly bank balances; auditors also flagged a utility billing rate error affecting large customers that staff say has been corrected.
Aaron Hawkins, partner in charge with auditing firm Robinson Farmer Cox, told the Isle of Wight County Board of Supervisors the firm issued an unmodified opinion on the countyfinancial statements for fiscal year 2025, meaning the audited pages "can be relied upon to be materially correct," he said. Hawkins also reported one formal finding — numbered 2025-001 — because county staff did not perform the quarterly confirmations of public deposit balances required by the Virginia Treasury Board for FY25.
Hawkins described corrective action taken for FY26 and said federal compliance findings the schools had in prior years were resolved this audit cycle. He also described a separate management-letter item: a utility billing test that found an incorrect rate applied to large accounts (an approved rate of $7.775 per gallon was not used in one test instance; $9.92 per gallon appeared in the billing file). "We have an on what's called an unmodified opinion," Hawkins said. County staff and the auditor told supervisors the utility-rate issue was isolated to services above the tested threshold, has been corrected and that staff will follow up with specific account counts and any required customer adjustments.
The presentation prompted questions from supervisors about the number of customers affected and whether refunds were needed. Hawkins and county staff said the scope appears limited to larger users identified by the firm's sampling and that staff have begun corrective steps for FY26. The countyadministration and school finance staff will provide follow-up details requested by the board, including the precise accounts affected and confirmation that the quarterly bank balance confirmations are now being performed.
Why it matters: an unmodified opinion signals the financial statements are reliable for readers; the finding and management-letter items point to internal-control and billing-process improvements the county has started addressing.
