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City audit finds clean opinion; bond proceeds drive fund balance increase
Summary
City of Newberry auditors issued an unmodified "clean" opinion on the city's and Community Redevelopment Agency's 2023–24 financial statements, citing no reportable internal control deficiencies; bond proceeds for a new City Hall and capital outlays were the primary drivers of a year-over-year fund-balance increase.
The City of Newberry received an unmodified, or "clean," audit opinion for its fiscal year 2023–24 financial statements, the city's independent auditor told the commission Monday.
Barbara Boyd, partner at Pervis Gray and Company, presented the annual audit and related examination reports and said the firm found no significant deficiencies, material weaknesses or instances of material noncompliance. "There are no reportable items," Boyd told the commission.
The auditors reported that total governmental revenues rose by about $2.1 million while expenses rose about $2.5 million, driven primarily by capital outlay for City Hall. Bond proceeds of roughly $6.7 million were issued to fund City Hall construction, producing a net increase in fund balance of about $8.4 million and an ending governmental fund balance reported at about $14.7 million for the fiscal year, Boyd said.
Acting Director of Finance Amanda Hagen walked commissioners through required communications with governance and noted a single-audit review of state grant activity tied to wastewater-treatment-facility construction. The auditors identified the wastewater construction project as a major state program for single-audit testing and found the city in compliance with the grant's requirements.
The CRA also reported increased activity: the CRA's ending fund balance for 2024 was reported at approximately $516,000, up about $300,000 from the prior year. Enterprise funds' total ending net position was reported at about $34.4 million, most of which is invested in capital assets; unrestricted net position was reported at about $3.7 million, a $700,000 decrease attributed to infrastructure investments.
Commissioners praised staff for the results. Mayor Marlowe and several commissioners noted the city's reserve levels and compliance with the city's reserve policy and the Government Finance Officers Association recommendations. No formal action was required; the presentation was received and commissioners asked follow-up questions about specific funds and recent accounting changes.
