County auditor issues unmodified opinion on Carroll County FY2024 financial report

Julie George, partner at Rushton, presented Carroll County's annual financial report for the fiscal year ended June 30, 2024, and said the auditors issued an unmodified ("clean") opinion on the county's financial statements. "In our opinion, the financial statements as presented in that bound report present fairly in all material respects the financial position of the county at June 30, 2024," she said.

The clean opinion means the auditors did not need to modify the standard report on the county's financial statements, George told the Board of Commissioners during the January 30 work session. The audit was performed in accordance with auditing standards generally accepted in the United States and with Government Auditing Standards issued by the U.S. Comptroller General.

George said Carroll County's government‑wide statements show growth across three net‑position components over the last five fiscal years. She cited a total net position at June 30, 2024, of about $249,382,000 and said the county reported $39 million in excess of revenues over expenditures for the year. The government‑wide statements convert fund‑level modified accrual accounting to full accrual and therefore display capital assets and long‑term liabilities such as debt and net pension positions.

The presentation also reviewed the general fund. George said the county's unassigned fund balance rose by about $3.9 million over the prior year, representing approximately 6.6 months of general fund expenditures as of June 30, 2024. "I think that's very healthy," she said, adding that the county's property tax calendar is one factor in judging desired reserve levels.

On revenue composition, George noted the general fund benefited from multiple revenue sources and that $10 million of American Rescue Plan Act (ARPA) funds were used as revenue replacement in FY2024; she said that transfer increased one‑time revenue and will affect percentage shares in comparative charts. She also reviewed general fund expenditure functions and said public safety accounted for more than half of general fund spending, a common pattern in counties that operate 911 systems and courts.

As required for entities that receive federal awards, Rushton reported on compliance with Uniform Guidance testing of major programs and expressed an unmodified opinion on compliance; no significant issues were reported for major program internal controls. Separately, the auditors' government‑auditing report noted no new findings but reiterated a familiar segregation‑of‑duties risk in some departments and constitutional offices where staffing levels limit separation of accounting tasks.

George walked through recent reporting changes under GASB: GASB Statement No. 100 affected the presentation of major and nonmajor funds for the June 30, 2024 statements; GASB 101, effective for the 2025 year, will affect accounting for compensated absences and the firm will host a webinar for county staff. George told the Board she had invited county staff to the webinar and planned follow‑up one‑on‑one meetings.

Commissioners discussed how Carroll County's fund balance compares with other counties and with guidance from the Association County Commissioners of Georgia. One commissioner noted ACCG recommends a minimum of three months of operating reserves; the commissioner observed Carroll County's roughly six months of reserves is "double the target." George and commissioners emphasized that comparisons among counties should account for local revenue volatility, tax calendars and debt obligations.

The auditors provided the Board with a bound annual report, a letter of communications required by auditing standards, and a letter of recommendations based on work in county departments and constitutional offices.

Questions about the audit and the financial slides were addressed before the Board moved on to other agenda items.