City auditors issue clean opinion; sales-tax receipts running above budget, city finance staff says

At the Jan. 28 Finance Committee meeting, auditors from Craft CPAs presented the City of Hendersonville’s annual comprehensive financial report for the year ended June 30, 2024 and reported a clean audit opinion. Senior staff from the finance office also briefed the committee on current revenue trends, including sales-tax collections running ahead of budget.

Audit findings and opinion

Ken Youngstead, a partner with Craft CPAs, and Julie Evans, senior manager on the engagement, told the committee the firm issued a clean (unmodified) audit opinion and reported no findings in internal control over financial reporting or in the federal grant program audited. "You got a a clean and modified audit opinion, which is the kind of opinion you want," Evans said during her remarks.

Revenue and fund updates

Finance Director Tamara Ingersoll reported that local option and state-shared sales tax revenues were “continuing to come in, at a healthy rate,” estimating roughly 106–107% of budget for those receipts. Investment earnings were on pace to exceed budget by about $300,000, she said. By contrast, hotel-motel tax receipts were running slightly lower than the prior year. The year-end estimate also included the projected effect of a reduced grocery tax rate effective Feb. 1.

Why it matters: A clean audit helps confirm the city’s financial statements and controls are sound; stronger-than-expected sales-tax receipts provide additional near-term flexibility for midyear priorities but staff flagged some volatility in hotel-related revenues and the grocery-rate change.

Next steps and availability

Craft CPAs said staff cooperation during the audit was strong and auditors remained available to answer questions at the board meeting. Finance staff indicated they will continue to monitor receipts and report updated projections as the fiscal year progresses.