Auditor reports clean, unqualified opinion for City of Conway, cites stronger reserves and revenue gains

Nathan Skipper, an auditor with Smith Sapp CPAs, told the Conway City Council on Feb. 3 that the firm issued a clean, unqualified opinion on the city's financial statements for the year ended June 30, 2024.

"There are no material weaknesses or noncompliance issues to report," Skipper said, adding the opinion indicates the statements "present fairly the financial position and operating results of the city" for the period.

Skipper said the city's unassigned fund balance rose from about $21.6 million to roughly $22.1 million, an increase of approximately $400,000, which he said amounts to about six months of general-fund operating coverage. Revenues for the fiscal year increased from about $25.8 million to $30.3 million, a rise Skipper attributed mainly to grant revenues and increases in property taxes, water fees, hospitality and sanitation fees. He also said the city paid down about $500,000 in outstanding bonds and leases during the fiscal year.

Allison Williams, identified during the meeting as a member of finance staff, was thanked by the auditor for the department's responsiveness and for the city's longstanding annual reporting practices; Smith Sapp noted the city has received the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting for more than 30 years.

Council members asked no substantive follow-up questions; the mayor and other members praised staff for maintaining the city's financial condition.

The presentation was informational only; no council action was taken on the audit during the meeting.