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Auditors give Gastonia a clean opinion; council accepts FY2024 financial audit
Summary
External auditor Martin Starnes issued an unmodified (clean) opinion on Gastonia's FY 2023-24 financial statements; the council accepted the audit after a presentation highlighting a roughly $11.5 million net increase in fund balance and an available fund balance near $41 million.
External auditors presenting Dec. 3 told the Gastonia City Council that the city's financial statements for the fiscal year ended June 30, 2024, were fairly presented and supported a clean (unmodified) audit opinion.
"In our opinion, the financial statements that were issued by the city are fairly presented," said Tanya Thompson, senior audit manager at Martin Starnes & Associates, summarizing the audit process and findings. She noted the audit team worked closely with city staff and issued the report timely.
Key figures presented included a year-over-year revenue increase of $16.6 million and a $6.6 million increase in expenditures, producing a net change in fund balance of about $11.5 million. From a budgetary perspective, revenues came in about $8.1 million over budget while expenditures were approximately $17.8 million under budget, the auditors said.
Thompson and Finance Director Crystal Certain reviewed fund-balance calculations, showing an available general fund balance near $41 million (about 46.4% of net expenditures), compared with the state-recommended minimum of 25%. Property tax revenue increased largely because of county revaluation despite a mill-rate reduction from $0.52 to $0.47 per $100 of assessed value.
On expenditures, the largest shares of spending were public safety (51%), general government (17%), culture and recreation (11%) and public works (11%). Auditors reported no material weaknesses in internal controls and no LGC red flags; all key performance indicators were within acceptable parameters, they said.
After the presentation, Council Member (unnamed in transcript) moved to accept the audit report and the council voted unanimously to do so.
The auditors also reviewed enterprise fund balances (electric, water, sewer, solid waste and others) and discussed debt totals, including governmental and business-type activities, noting a total outstanding debt near $176 million as of June 30, 2024, and a statutory debt margin the council could use in future financing decisions.
The audit presentation concluded with no findings of material weakness and positive performance indicators; councilors thanked staff and accepted the audit as presented.
