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Independent auditor gives Tega Cay a clean opinion; city posts positive net position and stable first-quarter results
Summary
An independent auditor issued an unmodified (clean) opinion on Tega Cay’s FY2024 financial statements and staff reported the general fund and utilities tracking to budget in the first quarter; auditors and councilors discussed GASB pension reporting and unrestricted net position.
An independent auditor told the Tega Cay City Council on Feb. 18 that the city’s fiscal 2024 financial statements are fairly presented and received an unmodified opinion, the highest level of assurance auditors give.
The auditor said the government-wide statement of net position showed total assets for governmental activities of about $51.2 million, with capital assets of roughly $34.3 million and cash and current assets of about $16.9 million; total governmental liabilities were about $28 million, producing a positive net position of about $24.9 million, of which 15% is unrestricted. The auditor described the city’s audit as clean and said no material weaknesses were found.
On the statement of activities, the auditor reported total governmental revenues of approximately $20.7 million and expenses of about $17.2 million, a net increase in position of roughly $3.5 million for the year. For the city’s utility (proprietary) activities, the auditor said total assets were about $22.6 million, net position about $8.8 million and operating revenues of roughly $7.8 million against expenses of about $7.9 million, a slight net decrease of about $93,000.
Councilors asked the auditor to clarify the 15% unrestricted portion of the net position and to explain the roughly $11 million net pension liability reflected under GASB 68/71. The auditor explained that the 24.9 million figure is assets minus liabilities (net position) and that the 15% is the unrestricted portion; the larger share is net investment in capital assets. He also explained that GASB 68/71 requires governments to record the unfunded portion of state retirement plans, with the city’s portion set by PEBA and reflected on the city’s books (about $11.3 million reported combining governmental and business-type activities).
City staff also provided a first-quarter operating summary: general fund year-to-date revenue of about $2.605 million (roughly 15% of budget) and expenses at about 25% of budget at this early point in the fiscal year, with the city noting most property-tax revenue arrives later in the year. Staff said the general fund’s unassigned fund balance was approximately $8.5 million, about 52% of actual general fund expenditures, and reiterated that key audit documents and the budget book are available online.
The auditor and staff encouraged councilors and residents to review the audit booklet and financial statements online; the auditor again characterized the opinion as unmodified, meaning the financial statements are fairly stated in all material respects.
