Finance director reports unmodified FY2024 audit; committee votes to revisit audit at next work session

Finance Director Rachel Nichols presented the City of Gallatin's fiscal year 2024 comprehensive annual financial report (audit) to the council committee on March 25. Nichols said the auditors issued an unmodified opinion, meaning the auditors did not require changes to the city's financial presentation.

Nichols walked committee members through summary highlights: the city's net position increased by about $25 million from the prior year, of which roughly $13 million was additional capital assets net of depreciation. She said unrestricted net position was approximately $112 million, an increase of about $7 million over the prior fiscal year; that total includes a rainy-day fund of about $11 million and amounts assigned for work already underway, such as Bligh Street renovations and the Long Hollow Pike realignment.

Nichols also noted the audit included required supplemental information, notes, and the federal single-audit schedule; auditors found no issues with grant reporting. The audit book contains statistical and historical tables covering 10 years of data.

After the presentation Councilman Gevontz asked that the audit be placed back on the next work session agenda to allow members time to review and to ask questions in an open forum. The committee voted on that procedural motion to place the audit on the April 8 work session agenda. The meeting record shows a roll-call vote on that motion: Vice Mayor Hayes voted No; Councilman Alexander Yes; Councilman Carter Yes; Councilman Fan Yes; Councilman Fennell No; Councilman Jones Yes; Councilman Javantes Yes. The motion to place the audit on the April 8 work session passed and will return to that agenda for additional questions.

Nichols said the audit had been filed with state and federal agencies and rating agencies and that the audit delay was due in part to extraordinary events affecting the auditing firm.