Fiscal Year 2025 Financial Audit

At a glance

What: the independent auditors' report on the Town's financial statements for the fiscal year ended June 30, 2025, presented to Council on May 28, 2026 by Finance Director Griffin with Lee Ann Waters and Michael Strainsby of the firm Cherry Bakaert.
Where it stands: presented and discussed; the minutes record the presentation slides only as images, so the audit opinion and figures are not in the text. Council asked questions but took no vote.
Next: the auditors outlined next steps to finalize the audit; no dates are recorded.

Zegerman asked whether an adjustment in the electric fund was related to the new GASB 101 accounting standard. The auditors said it was both: a GASB 101 restatement and, separately, a correction of an error. Strainsby said the Town's finance team had found some unrecorded assets with remaining book value and adjusted for them proactively.
Mayor Pro Tem Mahaffey asked how planned debt issuances would affect the debt service ratio against the Town's 12% policy limit, given a current ratio of 7.5%. Finance Director Griffin said it would be closer to 9% unless another bond referendum takes it toward 12.5%.
The item was originally listed on the consent agenda and then moved to a presentation. Cozzolino questioned the procedural change in the public forum and cited NCGS 159-34 on audit requirements (see Consent Agenda Spending Concerns).

Item TM1; presentation by the Finance Director and auditors, discussion, no vote.