City auditor delivers unmodified opinion on fiscal 2023-24; general fund shows 4.5 months reserve

An independent auditor told the Hartsville City Council the city's fiscal 2023-24 financial statements received an unmodified opinion, the highest level of assurance the auditors can give.

Shane Kirkley, partner with Sheehan Hancock & Godwin, presented highlights of the 103-page financial statements for the year ended June 30, 2024. The audit focused on the general fund and the water, sewer and water park fund.

Kirkley reported the general fund had total assets of $8,800,000 and total liabilities of $2,900,000, leaving a positive fund balance of $5,800,000 — roughly a 4.5-month reserve. For the water, sewer and water park fund, total assets were $35,200,000, liabilities $17,100,000 and net position $18,100,000; about $15,900,000 of that amount was invested in capital assets and slightly more than $1,000,000 was restricted for debt service, leaving an unrestricted positive balance of about $1,100,000 (roughly two months of reserves).

For the fiscal year (July 1–June 30, 2024), the general fund reported total revenues of $12,400,000 and operating expenses of $15,000,000, with other financing sources leaving a net positive change in fund balance of $1,300,000. The water, sewer and water park fund had operating revenues of $7,700,000 and operating expenses of $7,500,000; after non-operating items and transfers, it recorded a negative change in net position of $209,000.

Kirkley said the audit produced no findings in the financial statements and praised city staff for the quality of their work: “The staff is incredible here. The city has done a really good job.” The auditors provided a communication letter and management-approved journal entries in the packet for council review.

Why it matters: an unmodified opinion signals that the auditors found the financial statements to be materially accurate under accounting standards, an important assurance for citizens and creditors.