Anderson receives clean audit, GFOA awards as auditors flag stable fund balance

Anderson City officials on the council—s year-end meeting said the city received an unmodified, or "clean," opinion on its 2025 financial statements and two Government Finance Officers Association recognitions.

David McEwen, who introduced the presentation, said staff had prepared the annual report for the year ending June 30, 2025, and noted the city had earned national awards for both its comprehensive financial report and its budget presentation. "The certificate of achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reporting," McEwen said.

Auditor David Phillips, partner at Greenfinney and Cawley, told the council the firm issued an unmodified opinion, shorthand for a clean audit. "You have an unmodified and clean opinion," Phillips said. He explained that the audit found no material misstatements and that the city—s financial statements conformed to generally accepted accounting principles.

Phillips summarized several key figures: the city—s total fund balance decreased from the prior year but the unassigned fund balance was about $7.9 million, roughly 23% of 2025 expenditures (excluding certain one-time items), which he said aligns with GFOA recommendations on reserves. General fund revenues were about $41.3 million, a roughly 2% increase over the prior year, and general fund actual revenues were about 1% over budget (largely from property taxes and business-license revenues). On expenditures, Phillips noted a $7.7 million increase over the prior year driven by one-time capital outlays and higher salaries and benefits.

The audit team also reported no findings from the single-audit review of federal programs the city uses, including ARPA and FEMA funding, although it is finalizing a small amount of additional review tied to a late OMB compliance supplement. Phillips said the firm did not foresee material additional testing based on that supplement.

City staff said the report and awards reflect the finance team's work. McEwen and council members thanked the finance leadership, including Chief Financial Officer Margaret Martin and Finance Director Tamara Lindley, for the preparation and the staff—s performance.

The council asked several procedural questions about prepayments and reserve policies, which staff said were timing and cash-management practices rather than reporting problems. Philips and McEwen reiterated that the city—s financial condition remained sound and that the awards recognized consistent reporting and budgeting work.

The council did not take action on the report beyond receiving it; staff said final audit documents and a management letter will follow.