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Anniston receives clean fiscal 2024 audit; ARPA testing shows no compliance issues
Summary
External auditors reported an unmodified opinion on Anniston’s fiscal 2024 financial statements, no material weaknesses, and no findings from testing of American Rescue Plan Act funds. Auditors noted a healthy general-fund balance of about $21 million.
Garrett Williams, an auditor with HHMCA, told the Anniston City Council that the firm issued an unmodified opinion on the city’s fiscal year 2024 financial statements and found no material weaknesses.
“The job is just to make sure the financial statement package we give y’all is reasonably stated and free of material misstatements,” Williams said. He added the audit team also performed a single audit because the city exceeded the federal threshold for grant spending and that testing of ARPA funds “didn’t show any issues.”
The auditors reviewed management estimates, internal controls and grant compliance. Williams said the accounting team provided minimal cleanup entries and called this “probably been the best audit, on our side.” He reported no consultations with other accountants and no fraud identified during the audit.
The presentation included a high-level review of the general fund. Williams said the city’s total general-fund balance was about $21,000,000, with unassigned balance near $20,900,000. He translated that to roughly 41 percent of annual expenditures — about five months’ worth of operating reserves — and described that as a healthy position relative to a general guideline of two to four months.
Council members asked about reserve policy levels; Williams said he understood staff had discussed a 17 percent reserve target. “If 17% is the number, you definitely don't want to drop below 17%,” he said, and recommended future presentations show reserves relative to any locally adopted target so the council can assess available “wiggle room.”
No formal action was taken; the audit was presented for council information.
The audit team named on the record included Brock Oliver, Josh, Griffin and Joel as part of the engagement. City accounting staff cited by the auditors included Jessica from the city’s accounting team.
