County Budget Retreat Delayed
FY25 audit schedule and need to understand the local impact of federal spending bill HR 1 are said to drive decision
The Caswell County Board of Commissioners Budget Retreat originally planned for this Saturday has been rescheduled to March 14th.
County Manager Scott Whitaker explained to the Board during Tuesday night's Commissioners' meeting that the request to reschedule was not driven by the weather forecast, but by the realization that staff and facilitators would likely need more time to compile and verify the accuracy of the numbers and information the board would need to consider during the retreat.
North Carolina Association for County Commissioners (NCACC) Outreach Associate Amy Cannon and Financial Consultant Johnna Sharpe are expected to help facilitate that budget retreat.
Commissioner Frank Rose expressed concern over delaying a discussion intended to identify the board's strategic direction, or goals and priorities, for the county's FY26-27 budget. He questioned if the delay would not create additional work for department heads and others if that strategic direction was not offered early in the process.
Whitaker conceded that it was a concern but went on to caution the board that staff and NCACC were anticipating significant budget challenges related to the federal spending bill, HR 1, otherwise known as the Big Beautiful Bill, noting specifically changes in county costs related to SNAP (the Supplemental Nutrition Assistance Program) and Medicaid. He commented that potential General Assembly reforms related property taxes and reevaluation could also impact budget discussions.
The North Carolina Budget and Tax Center, among others, have warned that HR 1 significantly increases the administrative burden of local governments in the administration of safety net program while also reducing federal funds, resulting in what are often referred to as "unfunded mandates."
"I'll just say," Commissioner John Claggett interjected. "It seems like external priorities continue to define our strategic direction."
Whitaker noted that he had initially felt that same concern but that he believed the need to reschedule was driven more by the FY25 audit, which is expected to be completed in February. That timing will means this FY 26-27 budget will be the first informed by a prior year audit since 2021. READ MORE
When Claggett asked if staff could facilitate the retreat, potentially eliminating some of the scheduling conflicts to allow for an earlier meeting, Whitaker said that it was certainly possible but that NCACC facilitators would be able to provide much more detailed information about the local budgetary impacts of HR 1.
Commissioner Tony Smith offered that he had found the NCACC facilitation of the prior year's budget retreat to be extremely helpful and would rather wait for them to be included.
During their January 20th meeting, the Board voted 5-2, with Commissioners John Claggett and Finch Holt voting 'no', to reschedule the budget retreat to March 14th.
In related matters, the Board was informed that County Finance Officer Keith Horton and consultant Johnna Sharpe were awaiting input from the NC State Treasurer's Office regarding corrective action plans related to the FY 24 audit findings. This input will inform the county's response to the identified Financial Indicators of Concern and the formal submission of that response, in the form of a corrective action plan, to the Local Government Commission and the NC State Treasure's Office.
Findings from the FY24 audit included:
- Finding: 2024-001 Reconciliation of Records
- Finding: 2024-002 Deficit Fund Balances Not Appropriated in the Next Fiscal Year
- Finding: 2024-003, 004 Budget Violations (in excess of allocation)
- Finding: 2024-005 Late Submission of Audit
- Finding: 2024-006 Retention of Records (Lack of Internal Controls)
- Finding: 2024-007 Lack of Board Approval on Tax Releases and Refunds*
- Finding: 2024-008 Daily Collections Not Deposited Timely
- Finding: 2024-009 Lack of Internal Controls Around Payroll
- Finding: 2024-010 General Statute Violation – Preaudit
- Finding: 2024-011 Fidelity Bond Violation
- Finding: 2024-012 Segregation of Duties
- Finding: 2024-013 Local Government Commission Debt Approval
- Finding: 2024-014 Escheats and Abandoned Property
- Finding: 2024-015 Late Submission of Data Collection Form
- Finding: 2024-016 Inaccurate Information Entry
- Finding: 2024-017 Inadequate Request for Information
*During their January 20th meeting, the Board of Commissioners unanimously approved a newly developed Property Tax Refund and Release Policy to "establish a consistent, compliant process for reviewing and approving property tax releases and refunds and to clearly define which actions require Board approval and which may be approved under limited delegated authority."
