Dawson County audit earns unmodified opinion; reserves near half-year of operations

Dawson County’s fiscal 2024 financial statements received an unmodified — or "clean" — audit opinion, and county staff reported an unassigned general fund balance that could cover roughly half a year of operations, officials said Thursday.

Amanda Wilkerson, an auditor with Bates and Carter, told the Board of Commissioners the auditors issued an unmodified opinion for the year ended Dec. 31, 2024. "The opinion that's been released with the audit is an unmodified opinion, which is what's also known as a clean audit report," Wilkerson said.

The unmodified opinion means the auditors found the county’s financial statements to be presented fairly in accordance with generally accepted accounting principles. Wilkerson also noted the county had applied for a Certificate of Excellence for its annual comprehensive financial report, continuing a streak of applications that aims to recognize reporting above the state's minimum requirements.

Why it matters: A clean audit and a large unassigned fund balance suggest short-term fiscal stability and adherence to accounting standards, which can affect borrowing costs, bond ratings and public trust in county financial management.

Wilkerson summarized key fiscal-year data presented in the audit. General fund revenues rose about $768,000 (2 percent) from 2023, while total general fund expenditures increased by roughly $5 million (15 percent). The auditor attributed a little over $3 million of the spending increase to planned increases in wages and benefits, including cost-of-living, merit and longevity adjustments. Transfers out to other funds rose by about $879,000 to fund future capital projects.

On budget performance, the county’s 2024 revenues finished about $3 million above budget, largely because Title Ad Valorem Tax (TAVT) receipts exceeded conservative estimates, Wilkerson said. Expenditures finished about $3.7 million under the final approved budget, in part because salaries and benefits came in below budgeted levels.

Wilkerson explained the county’s unassigned fund balance ratio at the end of 2024 is just under 49 percent — above the common 15–25 percent guideline that equates to roughly two to three months of operations. "This ratio... could potentially fund up to half a year or 6 months of operations," she said.

The audit also reviewed other major funds. The county recorded $1.3 million of American Rescue Plan Act (ARPA) spending in 2024 used for premium pay for eligible employees; auditors noted about $91,000 remained in the ARPA fund for use in 2025. SPLOST collections were just over $19 million in 2024, a 32 percent increase from 2023; SPLOST expenditures were just over $8 million and included a $1.4 million allocation to the City of Dawsonville. Wilkerson said the SPLOST fund cash balance available for approved projects was just under $29 million at year end.

In business-type activity, the solid waste fund produced operating income of $168,000 in 2024, including $84,000 of noncash depreciation, and the fund carries a landfill post-closure liability of $894,000. Wilkerson said the landfill post-closure period ends in 2032.

Wilkerson noted governmental debt on the books is limited to contracts payable related to the Bridal Water and Sewer Authority expansion, with interest at 2.96 percent and maturity in 2027.

County officials thanked finance staff for preparing the annual comprehensive financial report and said the audit presentation would be followed by standard follow-up work. "Thank you, Natalie, and your staff as well," the board chair said at the close of the presentation.

The county will include the audit in its formal reporting and pursue the certificate of excellence application outcome later in the year.