Audit Committee January 6, 2026

Audit Committee Meeting Recap: January 6, 2026

The Audit Committee convened on January 6, 2026, to review the results of an independent audit of the town's finances for the fiscal year ending June 30, 2025, and to address necessary updates to the committee's bylaws. This meeting provided a crucial update on the town’s financial health and outlined steps to ensure ongoing accountability and efficient operations. The meeting was attended by members of the Audit Committee, representatives from Carter (the auditing firm), and town financial staff.

A primary focus of the meeting was the presentation and discussion of the audit findings. The good news is that the town received an "unmodified opinion" from Carter, signifying that our financial statements accurately reflect our financial position. While Hurricane Helene significantly impacted the year, with increased expenses related to recovery efforts and a slight decrease in the town’s overall net position, other areas performed well. Notably, the general fund exceeded budget expectations by a substantial $725,000. The committee also reviewed the water fund's performance, noting a slight net loss but positive cash flow. The discussion highlighted key events impacting the financial statements, including Hurricane Helene recovery efforts, cash flow management through bridge loans, and the implementation of a new accounting standard. The committee is actively working to secure full reimbursement from FEMA for hurricane-related expenses, with a portion already received and ongoing monitoring of outstanding costs led by Savannah.

Beyond the audit results, a significant portion of the meeting centered on updating the Audit Committee's bylaws. The committee identified several areas where current bylaws were outdated and not in compliance with best practices, including requirements for committee composition, meeting frequency, and oversight responsibilities. Recognizing the need for modernization, a smaller task force comprised of committee members (including Tom) will be formed to review and rewrite the bylaws, presenting recommendations for approval by the full committee. Additionally, discussions highlighted the importance of formally appointing a deputy finance officer to ensure continuity in financial operations and provide backup support when needed.

The Audit Committee took several key decisions during the meeting. First, they unanimously voted to recommend that the Board of Commissioners formally accept the audited financial statements, demonstrating confidence in the town’s financial management. Secondly, they established a task force to overhaul the committee's bylaws. Finally, Savannah will continue her efforts in tracking and following up on FEMA reimbursements for hurricane-related expenses. The final audited financial statements are currently awaiting approval from the Local Government Commission (LGC).

This meeting and its outcomes matter to residents because it underscores the town's commitment to financial transparency and accountability. The presentation of a full Annual Comprehensive Financial Report (ACFR) – something the town is proud to offer – provides detailed financial information directly to the public. The ongoing efforts to update internal procedures and ensure compliance with best practices will contribute to a more efficient and responsible local government, ultimately benefiting all residents.