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Charleston County auditor issues unmodified opinion on FY2024; fund balance, federal compliance noted
Summary
External auditor Scott & Company presented fiscal year 2024 results to the Charleston County Council audit committee, reporting an unmodified opinion, no material weaknesses and improved net position; auditors also reported single-audit coverage of federal programs including HUD CDBG and ARPA.
Michael Slapnik, a certified public accountant with Scott & Company, told the Charleston County Council audit committee on Jan. 14 that the county’s fiscal year 2024 financial statements received an unmodified audit opinion.
"I have nothing but positive things to report about your 2024 audit," Slapnik said, explaining the audit was completed timely with a report date of Dec. 23, 2024.
The nut graf: An unmodified opinion means the auditor found the financial statements to be fairly presented in all material respects. Slapnik also said the firm found no audit adjustments, no material weaknesses or significant deficiencies in internal control over financial reporting, and issued an unmodified compliance opinion on federal programs subject to single-audit rules.
Slapnik gave several headline numbers. The county’s government-wide unrestricted net position before budgetary constraints was about $292 million as of June 30, 2024, and the general fund had roughly $133.7 million in fund balance, about $110 million of which Slapnik described as unrestricted, subject to budgetary constraints. He said net position improved by about $180 million year over year as revenues exceeded expenses.
The auditor listed major federal programs subject to single-audit testing this year: the U.S. Department of Housing and Urban Development Community Development Block Grant (CDBG) program and the American Rescue Plan Act (ARPA) funding. Slapnik said Scott & Company issued a clean opinion on the county’s compliance with applicable federal requirements for those programs.
Council members asked questions about the county’s AAA bond rating and fund-balance policy. Slapnik did not confirm how many other counties nationally have AAA ratings but said fewer than 60 of the roughly 3,000 U.S. counties have that rating. He also said the county has been using a threshold of about 30% (of general fund expenditures) as a target that supported the AAA rating and that the county’s balance was slightly above that threshold.
Slapnik noted accounting standards activity: GASB Statement No. 100 (accounting changes and error corrections) was not applicable for 2024, but GASB 101 (compensated absences) will be implemented for FY2025 and staff are coordinating with auditors on that change.
Ending: Committee members offered public thanks to the county finance and accounting staff. Slapnik said the county had submitted its annual comprehensive financial report to the Government Finance Officers Association for review for the fiscal year and noted the county received the GFOA award for FY2023 and planned submission for FY2024.
