Mike Bradford of the accounting firm Phillips, Dorsey, Thomas, Waters, & Bradford presented the Fiscal Year 2005-2006 audit to the Vance County Board of Commissioners at their regular meeting on January 8.
Bradford suggested that an audit committee be formed that is not part of the County’s Finance Committee. He told commissioners that the Local Government Commission wants separation between management and the audit.
The auditor told the Board that the County had earned an unqualified opinion, which he characterized as the “best one”. He stated that the County has $13.2 milliion in its fund balance, $9.4 million of which is unrestricted.
Restricted funds are earmarked for specific purposes and may not be reallocated for other uses. Unrestricted funds may be spent by a municipal government for any legitimate reason.
Bradford stated that the fund balance represented 23% of the County’s operating budget.
The auditor stated that although tax collection had gone down slightly, the County was “holding its own” in the trend of collection.
The Board agreed to put the matter of an audit committee on the agenda for the next Board retreat.
County Commissioner Danny Wright asked if the fund balance was too high. He stated that he did not want the County to hold onto the taxpayers’ money if it was not necessary.
Bradford noted for the Board that the Local Government Commission mandates a balance between 8% and 24%. He called Vance’s reserve “a good number”.
The Board voted to receive the audit as information.