Independent auditor issues clean opinion on Hanahan FY24 financial statements

Kellen Schubert of Malden & Jenkins, CPAs, presented the city’s FY 2024 audited financial statements and reported an unmodified (clean) audit opinion on Jan. 14.

Schubert told council there were no audit findings, no material weaknesses and no significant deficiencies in internal control. He also reported that the city’s single-audit (required when federal expenditures exceed $750,000) included federal compliance testing related to ARPA spending and raised no reportable issues. Schubert described three main financial statements components (government-wide, fund-level, and notes) and highlighted that the city showed a net increase in position and a strong general fund balance—fund balance reached nearly $14 million in the five-year comparison included in the audit packet.

Schubert also noted a number of revenue and expenditure trends: property taxes, intergovernmental revenues and local option sales taxes were leading general fund revenues; general fund expenditures were highest in public safety and general government; and revenues came in above budget in several categories while some expenditures were under budget, producing a year-end surplus. He thanked finance staff for their cooperation.

Mayor Christy Rainwater and city staff thanked the auditor and finance staff for the audit work. No further action was required; the audit will be published with the city’s public records.

The audit presentation did not require council votes beyond acceptance of the report by consensus; the auditor recommended no corrective action.