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Auditor issues clean opinion but flags accounting adjustments; commissioners accept Walton County FY2024 audit
Summary
Mauldin & Jenkins issued an unmodified opinion on Walton County’s FY2024 financial statements but reported material weaknesses and required accounting adjustments; the commission accepted the audit at the meeting.
Walton County’s independent auditor delivered an unmodified (clean) opinion on the county’s fiscal-year 2024 financial statements while reporting several accounting adjustments and two material weaknesses; commissioners voted to accept the audit.
Ryan Jones, representing Mauldin & Jenkins, told commissioners the firm issued an unmodified opinion on the FY2024 statements and noted the audit covers the general fund and the county’s enterprise funds. Jones said auditors rely on actuarial estimates for the county’s pension-related balances and described about $14.5 million in net pension-related reductions embedded in the statements.
Why it matters: Jones reported that general fund revenues grew in 2024—tax revenue cited at about $70.6 million for the general fund—and that public safety comprised the largest share of general fund expenditures (about 41%). The unassigned general-fund balance rose to approximately $71.5 million at June 30, 2024, up from about $62 million the prior year.
Audit findings and required adjustments: The audit identified two material weaknesses that were carryovers from prior years and several required accounting adjustments. As presented to the board, the audit team required adjustments that included removing about $660,000 of accrued interest payable incorrectly recorded in the public facilities fund, reclassifying about $1,018,000 of interest payments that had been recorded as investment earnings in the water and sewer fund (Series 2022 revenue bonds), and correcting about $1,880,000 in interest posting related to industrial building authority revenue bonds for the jail facility. Additional adjustments included $510,000 related to amortization of deferred charges for refundings and bond premiums, an approximately $900,000 adjustment to a lease receivable, and corrections to investment earnings recorded in the ARPA fund.
Commission action: After the auditor’s presentation, a commissioner moved to accept the FY2024 audit and the board approved the motion. Mauldin & Jenkins emphasized there were no findings of fraud and that all identified audit adjustments had been posted.
What’s next: The auditor noted upcoming accounting changes that will affect future audits—compensated-absence reporting for the fiscal 2025 audit and other accounting pronouncements on the horizon—and said the finance department’s working relationship with the firm was positive. The county’s finance team and the board will receive the full audit communications packet that includes required governance communications and the detailed adjustments.
