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Independent auditor reports no material misstatements in Kernersville’s FY2025 audit; fund balance dipped slightly
Summary
Thompson Price Scott and Adams presented the FY2025 audit to the Kernersville Board of Aldermen, reporting no uncorrected material misstatements or disagreements with management and noting a general fund balance of $24.7M and a slight decline in fund balance available as a percent of expenditures.
Hunter Wiseman of Thompson Price Scott and Adams presented the town’s fiscal year 2025 audit at the Jan. 28 meeting, telling aldermen the audit was completed in accordance with government auditing standards and the firm found no uncorrected material misstatements or disagreements with management.
Wiseman highlighted the adoption of GASB Statement 101 (affecting compensated absences and sick-leave reporting) and noted significant accounting estimates that affect the financial statements, including doubtful accounts, compensated absences and depreciation estimates. He said the firm was not aware of any difficulties in dealing with management during the audit and that required management representations were received.
Key summary figures presented: total general fund balance $24,700,000; unassigned fund balance $8,800,000 (about 16.94% of general fund expenditures); general fund expenditures of $51,900,000; fund balance available as a percentage of general fund expenditures 36.82% (down from 42.13 the prior year). Wiseman also noted the town’s largest revenue source was ad valorem taxes and that collection percentages remain high.
On communications required by the Local Government Commission data, Wiseman said there were no financial performance indicators of concern that would require a board response to the LGC. He summarized that, while the town’s available fund balance percentage is down from the prior year and trails a group weighted average, the audit identified no items requiring corrective action from the board.
