City of Newnan officials heard the results of the 2024 financial audit during the Aug. 26 council meeting, where external auditor Greg Chapman reported an unmodified — or "clean" — opinion on the city's year-end financial statements.

Chapman told the council the audit was performed in accordance with generally accepted auditing standards and governmental auditing standards and provides reasonable, not absolute, assurance about the financial statements.

The report said total governmental assets and deferred outflows were approximately $238 million, with about $176 million in capital assets and roughly $49 million in cash and investments. Total liabilities and deferred inflows were reported at about $25.2 million, primarily noncurrent pension liabilities and accrued compensated absences, producing a net position of about $213 million on a full-accrual basis.

Chapman emphasized the city's liquidity position: the general fund ended 2024 with an unassigned fund balance of about $29 million, which he estimated is roughly 7.7 months of fund balance. He called that a "healthy" level that reduces the need for mid-year borrowing and provides flexibility during emergencies. The general fund showed roughly $38 million in revenues against about $40 million in expenditures, producing a net change in fund balance of about a $1.5 million deficit for the year.

Chapman also reviewed fund-level trends: approximately 45% of general-fund expenditures went to public safety, 19% to public works, 26% to general government functions and about 10% to community development and parks. He reported no material weaknesses or significant deficiencies in internal control and no findings in the single-audit testing of the city's ARPA program; ARPA was the only federal program requiring a single-audit test in 2024 because it exceeded the federal threshold for testing.

The auditor noted the city produced an annual comprehensive financial report this year and intends to submit it to the Government Finance Officers Association for a certificate of achievement. Chapman answered council questions and told members there were no disagreements with management, no uncorrected audit adjustments and that staff made the audit process smooth.

No formal council action was required on the presentation.

Chapman also said upcoming GASB changes (GASB 102 and GASB 103) are expected to bring limited disclosure changes but not require numeric restatements.

Council members thanked the auditor and finance staff for the report and for the timely production of the financial statements.