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James Island auditor issues clean opinion; town ends year with strong cash position
Summary
An independent auditor gave the Town of James Island an unqualified (clean) opinion for fiscal year 2024, reporting roughly $4.04–4.5 million in general‑fund revenues, positive operating income and about $570,000 in ARPA funds remaining. Council discussed that strong finances should help upcoming bond financing for a community arts center.
The Town of James Island received an unqualified (clean) audit opinion for fiscal year 2024, auditor Gary Bailey told the Town Council at its regular meeting.
Bailey said general‑fund revenues were about $4.04–4.5 million for fiscal 2024, an increase of roughly $700,000 from 2023. He attributed much of the year‑to‑year revenue jump to higher municipal fees (insurance‑related fees), which rose from about $1.1 million to about $1.5 million in 2024. Bailey said interest income also rose to about $100,000 after moving funds to the state investment pool.
The audit showed operating expenditures grew by roughly $600,000, with payroll and benefits accounting for about half of that increase. Bailey said the town spent a little over $3 million in capital outlays in 2024—primarily for capital improvement projects for drainage—and that some of those costs were paid with American Rescue Plan Act (ARPA) funds. He said about $570,000 in ARPA funds remained unspent at 06/30/2024 and will be recognized as revenue when spent.
The auditor told council the town finished the year with a positive change in general‑fund balance of about $338,000, reported roughly $4,000,000 in unrestricted cash on the balance sheet, had no long‑term debt as of 06/30/2024, and maintained liquidity measures—about 333 days of cash on hand and a quick ratio of approximately 7.37—that he characterized as strong.
Council members discussed how the clean audit and strong balance sheet could affect planned borrowing. Bailey said a clean opinion and low debt typically improve borrowing prospects and noted the council’s upcoming bond issuance for a community arts and cultural center would benefit from the town’s financial position.
Bailey also praised the town’s internal controls and budget reporting, noting no findings in the audit and commending staff for dual signatures on checks and regular budget‑to‑actual reporting.
Council did not take additional action on the audit at the meeting; Bailey fielded questions and left the presentation open for council review.
The auditor said he would answer follow‑up questions and council members thanked staff for their work preparing the financial reports.
