Buncombe County Audit Committee Meeting

Buncombe County Audit Committee Meeting Recap – January 21, 2025

The Buncombe County Audit Committee convened on January 21, 2025, to review the county’s financial standing, discuss upcoming audit procedures, and evaluate the effectiveness of internal controls. This meeting was a crucial opportunity to assess how Buncombe County is managing its finances, particularly in the wake of challenges presented by Hurricane Helene. The committee's decisions will directly impact how the county operates and ensures responsible use of taxpayer dollars.

A significant portion of the meeting centered on modernizing Buncombe County’s internal auditing practices. After considerable discussion, the committee voted to adopt the "Red Book" standards from the Institute of Internal Auditors. This shift reflects a commitment to proactive risk assessment, thorough follow-up on audit recommendations, and providing valuable insights to county management. The Red Book standards are considered internationally recognized best practices for internal auditing, moving away from the "Yellow Book" which primarily focuses on external audits. To align with this new standard, a draft audit charter was approved, formally outlining the Internal Audit department's responsibilities and aligning them with these best practices. The committee also explored the possibility of Internal Audit providing consulting services to county management, a practice supported by Red Book guidelines.

Beyond standardizing auditing practices, the committee addressed several pressing issues facing Buncombe County. The impact of Hurricane Helene was a recurring theme, acknowledged as having significantly disrupted the audit process and necessitating a reassessment of risks facing the county. The committee also discussed staffing challenges within the Internal Audit department, stemming from a current hiring freeze and the upcoming retirement of long-time auditor Lisa White. Plans were outlined to address these vacancies once the freeze is lifted, prioritizing both regular and IT auditors. Furthermore, discussions highlighted complexities surrounding grant management, particularly concerning opioid settlement funds, emphasizing the need for careful oversight.

Looking ahead, several key action items emerged from the meeting. The committee approved an audit of the county’s P-Card system, examining spending patterns both before and after Hurricane Helene. They also discussed the implementation of a new risk management software system, noting its potential to improve compliance with COSO standards. A quality assurance review of the Internal Audit department, conducted by an external assessor, was also planned to ensure adherence to best practices. Finally, the committee agreed on a system for regular updates from the Internal Audit director, including email summaries and discussions at future committee meetings. This commitment to transparency aims to keep the Board of Commissioners informed about significant findings and concerns, ensuring accountability.

The external audit firm, Malvin & Jenkins, recently issued a "clean opinion" on the county’s financial statements for fiscal year 2024, a positive indication of sound financial management. While the audit did identify minor findings related to beginning balance adjustments and compliance with state requirements for Temporary Assistance to Needy Families cases, the County is actively working on corrective actions. Overall, this meeting demonstrated a strong commitment from the Buncombe County Audit Committee to strengthen financial oversight, adapt to evolving challenges, and ensure responsible stewardship of public funds for all residents.