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Lexington receives clean audit; council to review ACFR in special December meeting
Summary
An independent auditor gave Lexington an unmodified opinion on its fiscal 2023–24 financial statements. Council members asked for time to review the Annual Comprehensive Financial Report before formally approving it and agreed to schedule a special December meeting so the Local Government Commission filing deadline is met.
Cassie Wilson, audit manager with Martin Starnes and Associates, told the Lexington City Council on Nov. 25 that the firm issued an unmodified opinion on the city’s fiscal 2023–24 financial statements.
“We did issue an unmodified opinion on the financial statements,” Wilson said, adding that auditors identified a small number of performance indicators and internal-control items that staff will address before final submission to the Local Government Commission (LGC).
Wilson said the city’s unassigned general fund balance ended the fiscal year at $8,309,504 and that the LGC’s calculated available fund percentage rose to 51.2. She also noted revenue and expenditure increases overall and that several enterprise funds showed improved unrestricted net position; water and wastewater operating income exceeded $3,000,000 for the year.
Council members asked questions about drivers of those changes, including recent rate adjustments, a large rebate and one-time transfers. Wilson and finance staff attributed the differences to rate changes, a prior-year infusion of $5,000,000 from the county and $6,000,000 in ARPA funds, and restructuring in electric and gas rates.
Several council members said they wanted time to review the full Annual Comprehensive Financial Report and the audit before voting to accept the report. Finance staff told the council the audit was submitted to the LGC that morning and reminded members that formal approval is required within 45 days of submission.
Council agreed to arrange a special December meeting to allow members time to review the documents and to take formal action before the LGC deadline. No final council vote to accept the ACFR was recorded at the Nov. 25 meeting.
The city manager and finance staff said they will circulate the full report and schedule the special session; the LGC will review the filing once the council acts.
