Kennesaw accepts FY 2024 audit; auditors report clean opinion and one recommendation

The Kennesaw City Council accepted the city’s audited financial statements for the fiscal year ended Sept. 30, 2024, after a presentation by external auditors that issued an unmodified (clean) opinion and reported one non-material recommendation.

Will Derses, engagement director with Malden and Jenkins, told the council the firm issued an "unmodified or a clean opinion on the financial statements of the city for 09/30/2024 year end." Derses summarized the citywide financial position, saying total assets were approximately $227,000,000 and liabilities approximately $35,000,000, leaving a net position of about $192,000,000, with roughly $116,000,000 invested in capital assets.

Derses said the city’s general fund revenues have outpaced expenditures over recent five-year trends, producing steady increases to the general fund balance. He also noted the city incurred and spent more than $750,000 in federal funds during the year, which required the single-audit procedures the firm performed.

The auditors reported no material weaknesses or significant deficiencies; management recorded several audit adjustments the firm proposed, and auditors issued one recommendation regarding pension census data. "We had no disagreements," Derses said of the audit process. After the presentation, Council Member Byers moved and Council Member Pat seconded a motion to accept the audit report; the council voted 5-0 to accept it.

Why it matters: A clean audit opinion indicates the auditors believe the financial statements fairly present the city’s financial position under applicable accounting standards. The single-audit work signals the presence of federal funding that triggers additional compliance requirements. The one recommendation noted by auditors will be a staff follow-up item.