County receives clean audit but auditors flag opioid-fund reporting timing and Medicaid eligibility finding

Deputy county manager Dee Michal introduced the 2025 audit at the Feb. 16 Carteret County Board of Commissioners meeting, and audit partner Robbie Bittner of PB Meyers presented the results.

Bittner said the firm issued an unmodified (clean) opinion on the county27s financial statements for the year ending June 30, 2025. He highlighted that the county received slightly more revenue than budgeted ($62,000,000 received vs. $59,610,000 budgeted), producing a positive revenue variance of roughly $2.41 million, and that the audited unassigned fund balance stood at $49.94 million (about 42.46% of general fund expenditures), a level Bittner said contributes to the county27s strong bond rating.

The auditors identified a material weakness related to the opioid fund: revenue received in July had been treated as deferred at the fund level instead of recognized as available under GASB timing rules. Bittner characterized that item as a timing and reporting issue that has been corrected and said there was no evidence of missing funds.

Separately, the audit included a material noncompliance finding tied to the Medicaid program27s eligibility determination function. Bittner said a small number of individuals were identified as receiving benefits for which eligibility determinations had not been completed; the auditors reported that finding to the state as required under Uniform Guidance and state Single Audit rules.

Bittner said aside from those items there were no other significant deficiencies or material weaknesses. He also explained practical delays caused by last year27s federal government shutdown that affected the Single Audit compliance supplement timeline but said the audit was completed within the extended Local Government Commission deadline.

Commissioners asked clarifying questions about occupancy-tax restrictions and other revenue classifications; staff confirmed the North Carolina General Assembly restricts occupancy-tax transfers for beach nourishment and tourism promotion via the Travel & Tourism Authority.