County auditor issues unmodified opinion; $17.5 million sick‑leave restatement disclosed
February 13, 2026 | New Hanover County, North Carolina
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Scott Anderson, the audit partner presenting for the county’s external auditor, told the board the audit report was issued Jan. 30, 2026, and the firm expressed an unmodified opinion on New Hanover County’s financial statements.
The audit included a compliance component for federal and state grants that was delayed because auditors did not receive a federal compliance supplement until late in the year; that compliance report was issued Feb. 9, 2026. Anderson said no corrected or uncorrected audit adjustments were identified during fieldwork and the audit report disclosed no deficiencies in internal control under government auditing standards.
Anderson also described a change in accounting guidance: the county adopted GASB Statement 101 on compensated absences, which required the government to recognize a liability for certain sick leave. He said the adoption led to a restatement of the beginning net position of about $17.5 million.
On the board’s question about the overall message, Anderson summarized: “You’re looking good. We did not have any adjustments. It was issued on time. We expressed an unmodified opinion.”
The presentation noted upcoming implementation work for additional GASB changes staff will need to adopt next year. The board did not take formal action on the audit during the agenda review; the audit report’s dates and the restatement were presented to the board for oversight and information.
The audit included a compliance component for federal and state grants that was delayed because auditors did not receive a federal compliance supplement until late in the year; that compliance report was issued Feb. 9, 2026. Anderson said no corrected or uncorrected audit adjustments were identified during fieldwork and the audit report disclosed no deficiencies in internal control under government auditing standards.
Anderson also described a change in accounting guidance: the county adopted GASB Statement 101 on compensated absences, which required the government to recognize a liability for certain sick leave. He said the adoption led to a restatement of the beginning net position of about $17.5 million.
On the board’s question about the overall message, Anderson summarized: “You’re looking good. We did not have any adjustments. It was issued on time. We expressed an unmodified opinion.”
The presentation noted upcoming implementation work for additional GASB changes staff will need to adopt next year. The board did not take formal action on the audit during the agenda review; the audit report’s dates and the restatement were presented to the board for oversight and information.
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