Special Meeting: Audit Committee (Virtual) (Jan 22, 2026)

Asheville City Audit Committee Meeting Recap: January 22, 2026 – Strengthening Financial Oversight

The City of Asheville’s Audit Committee held a special meeting on January 22, 2026, focusing on streamlining operations and receiving crucial updates on the city's financial health. This meeting was a mix of administrative housekeeping, election of leadership, and reviews from both internal and external auditors – all aimed at ensuring Asheville’s finances are transparent, secure, and compliant.

New Leadership & Streamlined Procedures: The meeting kicked off with the election of new leadership, with Nate Hathaway elected as Chair and Sandra Pramppong as Vice-Chair. The committee also formally approved updated Rules of Procedure, aligning all city boards and commissions under a unified framework. A significant change was the approval of an "as-needed" meeting schedule, replacing regularly scheduled meetings until June 2027. This shift aims to improve efficiency and focus resources where they are most needed, based on city staff recommendations.

Internal Audit Updates & Risk Assessment: A key focus was the update on the city's internal audit program. Frank McGowan, Strategic Services Manager, highlighted completed audits at Harris Cherokee Center and Fleet Management Operations, as well as inventory reviews across multiple departments. The city is now co-sourcing internal audit services with Plante Moran, a move designed to bring in specialized expertise. A presentation from Plante Moran detailed their 2025 risk assessment, identifying Human Resources, Transportation, Capital Projects, and Information & Technology Services as the highest-priority areas for future audit focus. Planned audits in Fiscal Year 2026 include Revenue and Payment Collections, Grants Management, and Cybersecurity – all critical areas impacting city operations.

External Audit Findings & Addressing Concerns: The committee received an update on the Fiscal Year 2025 external audit conducted by Cherry Beckert. The good news is that the auditors issued an unmodified (clean) opinion, confirming that the city's financial statements fairly represent its financial position. However, a single material weakness was identified related to delayed invoice accrual – something the city is actively working to prevent in the future. The committee also discussed the general fund balance, which currently sits slightly below the city’s target of 15%, and the need to respond to several performance indicators flagged by the Local Government Commission (LGC), including a decline in fund balance and a negative net income in the water fund.

What's Next & Why It Matters to You: The Audit Committee’s work directly impacts how your tax dollars are managed and accounted for. The committee is actively working to strengthen financial oversight through enhanced internal audits, addressing identified weaknesses in accounting processes, and responding to concerns raised by external agencies. The next steps include City Council approval of the LGC response letter and the completion of an independent audit of the Community Development Block Grant Disaster Recovery (CDBGDR) program. These actions demonstrate a commitment to transparency, accountability, and responsible financial management within the City of Asheville.

Citizen Involvement: While there was no public comment during this meeting, residents can stay informed about the Audit Committee’s activities and access detailed information on the City of Asheville's website.