Stephens County gets clean FY2024 audit; fund balance remains strong, FY25 Q2 revenues ahead of schedule

Josh Carroll, partner at Malden & Jenkins, told the Stephens County Board of Commissioners that the firm issued an unmodified (clean) opinion on the county's financial statements for the year ended June 30, 2024. Carroll said the audit covers the county's main funds and federal grant activity but not separate component units such as the Board of Health, Development Authority or Hospital Authority, which are audited separately.

The audit found no audit adjustments and produced a clean report on compliance and controls, Carroll said: "we did issue an unmodified or a clean opinion, which is what you would hope to receive." He told commissioners the firm tested major financial cycles (receipts, disbursements, payroll and employee onboarding/termination) and audited three large federal grants, including one to the sheriff's office, and found the county's grant compliance acceptable.

Carroll identified one recurring finding involving segregation of duties in smaller departments where one or two employees perform multiple parts of a transaction. "It does present some level of risk," he said, adding that management has implemented mitigating controls and that eliminating all such cases often is not cost-effective for smaller counties.

Carroll also delivered management comments that are not part of the formal audit report, recommending a disaster-recovery plan and noting some jail receipts lacked clear payees; he said state law requires unclaimed funds older than five years be turned over to the state. He flagged delayed deposits in some sheriff's receipts and recommended more frequent deposits.

James L. Rod, Stephens County finance director, presented the county's fiscal year 2025 second-quarter financial report. "Total general fund revenues are at 79%," Rod said, noting that property-tax collections and seasonal receipts in late fall and winter drive higher-than-average revenue percentages at midyear. He told commissioners the tax office had collected 97% of property taxes to date.

Rod said county revenues to date total about $17.5 million, and interest earnings total $298,000. He reported general fund expenditures at roughly 50.3% of budget at midyear. Rod identified several departments with above-target spending: data processing (noted as over budget due to hurricane-related costs and equipment/setup for new employees), buildings and grounds (vehicle repairs), the sheriff's office (vacation payouts and prepaid items), public works (street paving projects that will be adjusted when projects are complete), and building inspections (higher workload and additional field costs). The ARPA fund showed 78% in expenses, and the Capital Projects Fund expenditures were low at 26% because multiple projects were still pending invoicing.

Carroll and Rod emphasized the county's fund-balance strength: Carroll noted Stephens County's general fund reserve is about 50% of expenditures and transfers-out, well above the Government Finance Officers Association's (GFOA) minimum recommendation of two to three months (roughly 16'25%). "You have a very healthy fund balance," Carroll said.

Carroll offered auxiliary services available from his firm's government advisory and IT/cybersecurity practices and reminded commissioners of ongoing GASB (Governmental Accounting Standards Board) implementation work affecting government reporting.

The presentations concluded with commissioners thanking staff for the audit and the finance team's work on the budget and year-to-date reporting. No formal action was required or taken on the audit itself during the meeting.