Who’s Watching the Books? Audit Delays and Control Failures Under Scrutiny

Virginia Code § 15.2-2511 states, “Localities shall have all their accounts and records, including all accounts and records of their constitutional officers, audited annually as of June 30 by an independent certified public accountant in accordance with the specifications furnished by the Auditor of Public Accounts. The certified public accountant shall present a detailed written report to the local governing body at a public session by the following December 31…”

Additionally, Virginia Code §15.2-2512.1. Fiscal distress means a situation whereby the provision and sustainability of public service “… lack of trained and qualified staff to process administrative and financial transactions, or the inability to timely produce an audited financial report…”

I spoke to the Board of Supervisors (BOS) three times during public comments to highlight irregularities in the FY23/24 cash reconciliation and the audit delay, which led to a six- month delay in the FY24/25 audit. Each time, I asked the board to conduct a forensic audit of its internal financial management controls.

A forensic audit would review the county’s financial records to identify weak internal controls that could lead to mismanagement or irregularities. It would help auditors spot vulnerabilities and strengthen controls, preventing future financial problems and audit delays. This audit would give the board confidence in past financial performance before deciding whether to raise taxes to address cash flow problems, unpaid expenses, revenue shortfalls, unbalanced budgets, or fund capital improvements.

To explain my request, here is a timeline of events from public records and documents available to Warren County citizens.

July 9, 2025. As Supervisor, I chaired the Finance Audit Committee (FAC). At this meeting, I asked if the Dec. 31, 2025, deadline for the FY23/24 audit would be met. We were told that audit documents needed to be sent to the auditors by July 31 to stay on schedule. I asked whether temporary help could speed up reconciliations, and the FAC was told extra help was already in place, including the County’s CPA and another CPA firm. I suggested canceling the August FAC meeting so staff could focus on finishing the audit.

Sept 3, 2025. I resigned from the Board of Supervisors three months before my term ended.

Sept 10, 2025. The FAC was informed that the CPA firm is on track, believes it has received all necessary documentation, and expects an update by Sept. 12th.

Oct. 8, 2025. The FAC was informed that the final completion date of the audit remains uncertain and will depend on the auditors’ availability.

Nov. 12, 2025. The FAC was informed that as of Dec. 31, 2023, there were over $2 million in outstanding checks, with the oldest dating back to 2014.

Dec. 11, 2025. The FAC was told that there were staff using Quicken on their computers to issue checks that were not linked to the main financial system. The former County Administrator, Mr. Gotshall, presented the Report on FY24 Audit Delays, Version 2.0, to the committee. In his report, audits from FY2021 through FY2023 found a continuing weakness in internal controls for financial reporting. The main causes were staffing and procedural problems, underscoring the need for better internal control design and regular monitoring.

Jan. 13, 2026. Chair Cheryl Cullers (R) and Hugh Henry (R) suggested reorganizing the committee so district supervisors would appoint FAC members from their districts. Ms. Cullers also suggested suspending the FAC until the audit is completed.

Jan. 14, 2026. The Barry Dunn Memo: Status of Work Performed through Jan. 9, 2026, was presented to the FAC. The report to Mr. Gotshall said they reduced a $38.7 million variance
to $126 for the first six months of 2024 and provided an update on the overall status of the FY23/24 cash reconciliation.

Jan. 20, 2026. Chair Cheryl Cullers (R) and Hugh Henry (R) continued discussing suspending the FAC and proposed that the BOS should serve as the FAC. Mr. Henry also proposed reorganizing the committee to include representation from each district.

Jan 28, 2026. Former County Administrator, Mr. Gotshall, resigns pursuant to Section 10-B(C) of his employment Agreement.

Feb. 3, 2026. The BOS removed the agenda item, Consideration of Warren County FAC, and proposed a motion to dissolve the committee to be discussed at a later board meeting.

Many factors have affected the county’s FY23/24 cash reconciliation and audit, which is why I requested a forensic audit of the financial system and internal controls. These irregularities have persisted for years and have resulted in a $38 million variance in the FY23/24 cash reconciliation for one operating fund, which was carried over into FY25 and into the current FY26 budget.

How will the county record these reconciled transactions? Is there supporting documentation, or will they be entered as adjustments in the financial system? County staff also used Quicken on their computers to write checks, which could make it appear the county kept two sets of books. How long did these employees have access, and who allowed them to write checks for the county?

I have asked the BOS additional questions and am awaiting their response on whether a forensic audit is needed to understand the internal control failures. Also, what steps will the county take to fix these issues, such as hiring more staff and improving internal controls, policies, and training? Hopefully, the board will respond soon.

Vicky Cook
Warren County, VA

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