Matthews audit: clean opinion, but late LGC filing triggers required corrective response
April 13, 2026 | Matthews, Union County, North Carolina
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Jill Vang of Martin Starson Associates told the Matthews Board of Commissioners on April 13 that the firm issued an unmodified (clean) opinion on the town's FY2025 audited financial statements, meaning auditors found no material misstatements.
"We issued an unmodified opinion, which is a clean opinion, the best one that you can get," Vang said while summarizing the audit results. She noted the audit included a single-audit review of one major program (referred to in the presentation as the POW bill program) and that the town implemented accounting guidance related to compensated absences (recording a portion of sick leave as a liability).
The audit presentation showed the town's general fund balance rose about $2.4 million (12%) from FY2024 to FY2025, with unassigned fund balance up roughly $300,000 (about 2.3%). Total general fund revenues were reported at $36.3 million; revenues exceeded expenditures by $537,000 in 2025, excluding other financing sources such as long-term debt. The presentation also noted a $1.75 million long-term debt issuance recorded in the general fund.
Auditors cautioned the town had a performance indicator on the Local Government Commission (LGC) data input sheet because the audit report was not submitted to the LGC in a timely manner. That late filing produced an audit finding that requires the town to issue a written response with explanations and corrective actions to the LGC within 60 days. The correspondence must be signed by board members, the town manager and the finance director.
The board was told a corrective action plan would be brought back for consideration at a future meeting. No policy changes or budget amendments were adopted at the April 13 session; the board will continue its review as staff prepares the LGC response.
What happens next: the town is expected to submit the required written response to the Local Government Commission and present a formal corrective action plan to the board at an upcoming meeting.
"We issued an unmodified opinion, which is a clean opinion, the best one that you can get," Vang said while summarizing the audit results. She noted the audit included a single-audit review of one major program (referred to in the presentation as the POW bill program) and that the town implemented accounting guidance related to compensated absences (recording a portion of sick leave as a liability).
The audit presentation showed the town's general fund balance rose about $2.4 million (12%) from FY2024 to FY2025, with unassigned fund balance up roughly $300,000 (about 2.3%). Total general fund revenues were reported at $36.3 million; revenues exceeded expenditures by $537,000 in 2025, excluding other financing sources such as long-term debt. The presentation also noted a $1.75 million long-term debt issuance recorded in the general fund.
Auditors cautioned the town had a performance indicator on the Local Government Commission (LGC) data input sheet because the audit report was not submitted to the LGC in a timely manner. That late filing produced an audit finding that requires the town to issue a written response with explanations and corrective actions to the LGC within 60 days. The correspondence must be signed by board members, the town manager and the finance director.
The board was told a corrective action plan would be brought back for consideration at a future meeting. No policy changes or budget amendments were adopted at the April 13 session; the board will continue its review as staff prepares the LGC response.
What happens next: the town is expected to submit the required written response to the Local Government Commission and present a formal corrective action plan to the board at an upcoming meeting.
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