Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Finance Audit topic
No spam. Unsubscribe anytime.
City of Anderson receives clean audit, fund balance rises to $13.1 million
Summary
External auditors issued an unmodified opinion on the City of Anderson’s fiscal year ended June 30, 2024, and city staff reported a stronger-than-expected fund balance and healthy enterprise funds.
The City of Anderson received an unmodified audit opinion for the fiscal year ended June 30, 2024, the highest level of assurance from external auditors, city staff and the auditor said during the council’s December meeting. The audit and accompanying management communications, presented by Larry Finney of Greening Finney Cooley LLP, showed an increase in overall fund balance and no federal compliance findings for the program selected for single-audit testing.
The unmodified — or “clean” — opinion means the auditors did not identify a material misstatement in the financial statements, Finney told the council. “That’s the best opinion that you can receive,” he said during the presentation to council.
Why it matters: a healthy general fund balance gives the city operating flexibility during months without major tax receipts and strengthens the city’s credit profile for bond markets. City staff reported the total fund balance was about $13.1 million at June 30, 2024, of which an unassigned portion available for operations was roughly $12.3 million. That unassigned balance represented about 37% of the city’s general fund expenditures — well above the Government Finance Officers Association (GFOA) guideline of roughly two months (about 16.7%) of expenditures.
Finney and city finance staff said revenue growth — including property tax growth — and conservative budgeting on the expenditure side produced the increase in fund balance. The city reported general fund revenue just over $40 million for the fiscal year, about $6 million higher than the prior year and about $2 million over budget. General fund expenditures were about $33 million, roughly 1% higher than the prior year and about $500,000 under budget.
The auditors also reported on federal funds compliance. Because the city receives substantial federal assistance, auditors perform a single-audit program compliance review. For this audit cycle the ARPA program was selected; Finney said the city had no findings or issues with ARPA compliance.
City finance leaders pointed to the continuity of local staff work as a factor in the strong results. Chief Financial Officer Margaret Martin and members of the finance team — Tamara Lindley, Elizabeth Willett and Reagan Phillips — were recognized by the council for the work that led to the report. Mayor and council members noted the GFOA certificate of achievement for the annual comprehensive financial report and a GFOA distinguished budget presentation award that the city has received repeatedly.
What’s next: the audit documents and management letter were distributed to council; Finney said the printed financial statements were “hot off the press” and staff will follow up if council members want additional detail.
