External auditor issues unmodified opinion for Athens-Clarke County, flags declining general fund balance and control weaknesses to address

Sam Latimer, the audit partner on Athens-Clarke County's engagement, told the commission at its February work session that the county's external audit resulted in an unmodified opinion on the financial statements and an unmodified report on federal expenditures.

"We issued the report before Christmas," Latimer said, and added that auditors found "no material weaknesses, no significant deficiencies" and no material noncompliance in the reports issued under Government Auditing Standards and the Uniform Guidance.

The audit presentation also flagged a downward trend in the county's general fund balance. Latimer said the ratio of fund balance to expenditures and transfers fell from about 32% in the prior year to about 22% in the most recent year. He noted the county's fiscal policy target of 16.67% (two months) remains met but pointed out that roughly 8 percentage points of the fund balance are already assigned to next year nd therefore effectively committed for projected FY2025 spending.

Latimer and finance staff discussed the drivers of the change. The audit showed large transfers out of the general fund for capital projects: transfers totaled roughly $7.5 million in 2022, about $14 million in 2023 and about $26 million in 2024, with prior-year transfers near $10 million and the most recent year…