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Cleveland County adopts corrective plan after delayed FY 2024–25 audit filing
Summary
County leaders approved a corrective audit response after the FY 2024–25 audit was submitted late and identified three financial-performance issues, including lease-accounting misclassification under GASB 87, delayed reconciliations of bank accounts and the late audit filing. The board approved new reconciliation procedures and independent review.
The Cleveland County Board of Commissioners unanimously approved the county’s corrective response to findings in the FY 2024–25 audit, county officials said during the May 5 meeting.
County Manager David Cotton told commissioners the audit identified three issues rising to the level of financial performance indicators of concern: misrecorded vehicle lease payments under GASB Statement 87, a late audit submission, and delays reconciling the county’s bank accounts. Cotton said staff has corrected the lease accounting error and is implementing procedural changes, including daily reconciliations and monthly financial reports to the board. He said the county engaged an independent consultant through the North Carolina Association of County Commissioners to review financial processes and recommend improvements.
Cotton outlined that of 31 bank accounts, three were not fully current at the time of the report—two were one month behind and one was in the process of closing and approximately one month behind. He also said the corrective action plan has been reviewed and accepted by the county’s independent auditor and that quarterly audit-status updates will be presented in public session beginning in mid-May.
Chairman Kevin Gordon emphasized transparency and public accountability and asked that the consultant’s report be released “as soon as practicable following appropriate review, so that citizens may fully understand the issues identified and the corrective measures being implemented.” The board voted unanimously to approve the corrective response for formal submission to the N.C. State Treasurer’s Office and the Local Government Commission.
The board instructed staff to provide monthly financial reports and quarterly public audit updates going forward; the board described the actions as intended to prevent a recurrence of late filings and to improve oversight.
