Caldwell County audit: clean opinion, fund-balance metrics and water-asset note
January 29, 2026 | Caldwell County, North Carolina
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An independent auditor told the Caldwell County Board of Commissioners on Jan. 26 that the county s fiscal-year 2025 financial statements earned a clean (unmodified) opinion and that no material weaknesses or significant deficiencies were found.
"We have issued a clean unmodified opinion for fiscal 2025 audit," the auditor representing Martin Starnes & Associates said, noting that the general fund recorded about $98,600,000 in total revenue for 2025 and expenditures of roughly $100,000,000. Property taxes accounted for about 57% of general-fund revenue, the presentation said.
The auditor highlighted several metrics: revenues exceeded budget by $923,000 (mainly sales and services), expenditures were under budget by about $9.5 million, and available fund balance increased by 1.7 percentage points year over year. The auditor said the county s available fund balance sits near 21%, above the Local Government Commission peer-group median of roughly 20%.
On the water fund, the presentation showed operating cash, capital spending and a water net income excluding depreciation and debt-service principal reported at about $655,000. The auditor flagged a water capital-assets condition ratio of 23%, below the LGC threshold of 50%; the county must submit a written corrective-action response to the LGC within 60 days of the audit presentation.
Commissioners asked whether the Collinsville water tank coming online would change that ratio; county staff said disinfection and commissioning were expected within days to weeks and that the asset condition ratio should improve once the tank is in service.
No audit findings requiring formal remediation were reported beyond the LGC corrective-action requirement tied to the water capital-assets ratio. Commissioners discussed fund-balance guidance and the link between available fund balance and borrowing capacity, and asked staff to continue line-item budget review during upcoming budget sessions.
"We have issued a clean unmodified opinion for fiscal 2025 audit," the auditor representing Martin Starnes & Associates said, noting that the general fund recorded about $98,600,000 in total revenue for 2025 and expenditures of roughly $100,000,000. Property taxes accounted for about 57% of general-fund revenue, the presentation said.
The auditor highlighted several metrics: revenues exceeded budget by $923,000 (mainly sales and services), expenditures were under budget by about $9.5 million, and available fund balance increased by 1.7 percentage points year over year. The auditor said the county s available fund balance sits near 21%, above the Local Government Commission peer-group median of roughly 20%.
On the water fund, the presentation showed operating cash, capital spending and a water net income excluding depreciation and debt-service principal reported at about $655,000. The auditor flagged a water capital-assets condition ratio of 23%, below the LGC threshold of 50%; the county must submit a written corrective-action response to the LGC within 60 days of the audit presentation.
Commissioners asked whether the Collinsville water tank coming online would change that ratio; county staff said disinfection and commissioning were expected within days to weeks and that the asset condition ratio should improve once the tank is in service.
No audit findings requiring formal remediation were reported beyond the LGC corrective-action requirement tied to the water capital-assets ratio. Commissioners discussed fund-balance guidance and the link between available fund balance and borrowing capacity, and asked staff to continue line-item budget review during upcoming budget sessions.
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