The Mooresville Board of Commissioners received the town
annual audit executive summary from audit firm Cherry Bekaert, which indicated auditors planned to issue an unmodified (clean) opinion on the town
financial statements while reporting a limited material weakness and some restatement-related items.

Dan of Cherry Bekaert explained that the firm audited the financial statements in accordance with generally accepted auditing standards and government auditing standards and that the financial-statement opinion would be unmodified. He said auditors identified a material weakness related to sales tax timing: certain sales-tax revenue that should have been accrued to the prior fiscal year was posted to the current fiscal year, requiring a reclassification of about $1.9 million. "It was recorded; it was identified," Dan said. "It wasn't a miss; it was just a misallocation between the years." The town made corrective entries and presented the corrected amounts in its financial statements.

Dan also described uncorrected or restatement-type adjustments primarily related to federal and state grant revenue recognition (revenue that should have been recognized in the prior year) and an overstatement of some donated assets ($508,000). He told the board those matters were appropriately disclosed and that management provided a corrective action plan; the Local Government Commission (LGC) will receive follow-up and the town must document how the issue will be corrected to prevent recurrence.

On grants and single-audit timing, auditors said the federal compliance supplement was delayed by the federal government until late in the year, which delayed completion of single-audit testing; auditors reported no findings on the two grants they had tested to date. Dan said there were no auditor-identified incidents of fraud, no going-concern issues, and no disagreements with management.

What happens next: auditors plan to issue the financial statements with an unmodified opinion in the next business days, staff will provide the board with the audit PDF and supporting schedules, and the town will file required documentation with the LGC within the statutory timeline.