State audit flags financial concerns in Columbus County

COLUMBUS COUNTY, NC (WWAY) — A new state audit has raised concerns about Columbus County’s financial health, citing late financial reporting, unresolved internal control issues and a declining fund balance that could create challenges for the county’s future finances.

The North Carolina Office of the State Auditor released a performance audit examining the county’s financial position and key financial indicators. While the county agreed with the findings and recommendations, auditors identified several areas they say require immediate attention.

Among the report’s findings, auditors noted that Columbus County filed its Fiscal Year 2024 financial statement audit late, while the Fiscal Year 2025 audit had not been completed at the time of the state’s review.

The audit also found that material weaknesses in the county’s internal financial controls had not been corrected despite being identified in previous audits.

In addition to reporting concerns, the audit highlighted broader financial trends that could affect the county’s long-term stability. Auditors found that the county’s available General Fund balance has been declining, reducing the financial cushion available to respond to unexpected expenses or emergencies.

The report also points to declining property values, warning that lower property assessments could reduce future property tax revenues, one of the county’s primary funding sources.

State Auditor Dave Boliek said the report is designed to give taxpayers a clearer picture of their local government’s financial condition while identifying areas where county leaders can improve.

“The Columbus County Performance Audit is an example of how the State Auditor’s Office can open a county’s books and provide taxpayers with an easy-to-digest report on the state of their county government’s finances,” Boliek said. “In Columbus County, auditors point out the problems, like submitting audits late, and show where improvements can be made so that residents can get the best return on investment from their tax dollars.”

Boliek added that readers looking for a more detailed breakdown of the county’s finances can find it in the audit’s appendix, which includes expenditures by object code, fund and account.

To address the issues, the Office of the State Auditor recommended that county leaders:

• Strengthen audit preparation and ensure financial statements are completed on time.
• Resolve repeat internal control deficiencies through corrective action.
• Rebuild the county’s available General Fund balance.
• Improve budget reporting and financial oversight.
• Develop a hiring and succession plan for key financial management positions.
• Make greater use of technical assistance and resources available through the North Carolina Local Government Commission.

County officials agreed with the audit’s findings and recommendations. Their formal response is included in the report.

The performance audit focuses on the county’s financial condition and management practices and is intended to help local officials improve financial oversight and long-term fiscal stability.