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External auditors issue clean opinion on Beaufort’s FY 2024 annual comprehensive financial report
Summary
External auditors presented the Fiscal Year 2024 ACFR to the council, reporting an unmodified (clean) opinion, no audit findings, and year‑over‑year increases in revenues and net position; staff and auditors reviewed fund balances, federal single‑audit thresholds and major drivers of revenue and expense changes.
City auditors presented the Fiscal Year 2024 annual comprehensive financial report and related compliance work to the council and reported an unmodified (clean) audit opinion and no audit findings.
David Erwin, partner for the audit team, told council the audit was conducted in accordance with governmental and generally accepted auditing standards and that the city received a clean opinion. "We are issuing a clean or unmodified opinion on this year report," Erwin said. He also reported no material weaknesses or significant deficiencies in internal control and noted the city received a Government Finance Officers Association certificate for excellence in financial reporting for the 17th consecutive year.
Auditors and staff reviewed key figures from the ACFR. Citywide (government‑wide) totals reported assets and deferred outflows of about $118,000,000; the city held roughly $40,500,000 in cash and cash equivalents with about $11,000,000 restricted for debt service and capital projects. Total revenues for FY 2024 were about $40,200,000, an increase of roughly $5,800,000 (about 17%) from FY 2023. Expenses were approximately $33,600,000 (an increase of about $2,600,000), producing an increase in net position of about $6,600,000.
At the fund level the general fund recorded total revenues of roughly $28,900,000 (about $4,600,000 higher than the prior year) and general fund expenditures of about $26,800,000 (an increase of about $2,200,000). The general fund’s fund balance increased by about $3,000,000 to an ending balance of approximately $14.63 million; auditors noted this equals roughly three and a half months of operating expenditures as of year‑end.
Erwin highlighted that the city’s federal expenditures exceeded the single‑audit threshold and required a single audit; the city reported about $2,600,000 in federal expenditures in FY 2024, the majority tied to ARPA (American Rescue Plan Act) funds. The auditors reported no findings in the single audit or in the report on internal controls (the “yellow” report).
Councilors asked technical questions about differences between government‑wide and fund‑level presentations, including why some expense categories differ between the two statements. Auditors explained differences stem from fund accounting conventions: capital asset recognition, debt accounting and reconciliation items between fund statements and government‑wide statements.
Staff and auditors also reviewed specific revenue and expense drivers: property taxes (about $9.6 million), licenses and permits (about $7.9 million), intergovernmental revenue (about $5.5 million), growth in business licenses and an increase in investment income tied to market interest rates. Expense drivers included personnel and benefit increases and two additional school resource officers funded through state grants, higher law enforcement fuel and equipment costs, and an insurance‑covered repair to a fire truck.
No formal council action was taken during the work session; auditors said the ACFR would be posted online and that staff will return with any follow‑up items as required by the council’s calendar.
