The Lenoir City Council voted on Jan. 6 to accept the city's annual audit for the year ended June 30, 2025. Cynthia (Cindy) Randolph, the city's CPA, presented the financial highlights and said the audit was submitted to the Local Government Commission and approved by that commission.

Randolph said the city reported combined governmental fund balances of $25,648,003.19, an increase of roughly $3.0 million from the prior year, and an unassigned general fund balance of about $21,000,007.42 (approximately 93% of general fund expenditures). The city's total outstanding debt (governmental funds plus water/sewer business-type activities) was reported at $18,212,000 and the water/sewer net position was $62,088,666. She noted the city had single-audit reporting obligations because federal funding exceeded $750,000 and state funding exceeded $500,000; the auditor's review found no material weaknesses or significant deficiencies in internal control.

After questions from council members and staff, Council member Stevens moved to accept the audit for the year ended 06/30/2025; the mayor called for a voice vote and the motion carried. Council and staff thanked the finance team for the work on the audit.

Council members asked clarifying questions about internal controls, program testing under the single-audit, and fund balance trends; staff said the audit contained financial highlights in the packet and that there were no Financial Performance Indicators (FPICs) requiring special reporting to the board.