Newton County audit: independent auditors issue clean opinion, finances described as strong

The Newton County Board of Commissioners heard a presentation March 17 from Malden Jenkins auditors, who said they were issuing a clean (unmodified) opinion on the county’s FY25 financial statements and a clean single-audit compliance report.

David Erwin, partner at Malden Jenkins, told the board the audit found no material weaknesses or significant deficiencies in internal controls and that auditors had no disagreements with management. “We are issuing a clean or unmodified opinion on this year’s report,” Erwin said.

Why it matters: a clean opinion is the highest level of assurance an external auditor can give and signals that the county’s financial statements are, in the auditors’ view, fairly presented in all material respects under generally accepted accounting principles. The report also helps the county demonstrate sound stewardship to bond markets, grantors and taxpayers.

Key numbers from the presentation: Erwin said total assets and deferred outflows were about $548,000,000, with roughly $300,000,000 in capital assets net of accumulated depreciation and about $180,000,000 in cash and investments. Total liabilities were around $160,000,000. Revenues were approximately $229,000,000 (up about $6 million from the prior year) and expenses about $182,000,000 (down about $17 million). The auditors reported an ending net position of roughly $387,400,000 (an increase of about $46.1 million).

The general fund finished the year with an approximate fund balance of $58,200,000, which Erwin said represented roughly seven months of operating expenditures and provided flexibility for cash flow and emergencies. On the fund-level details, Erwin said the general fund’s revenues were about $99.4 million and expenditures about $95.6 million, with revenues exceeding expenses by about $3.8 million for the year.

Enterprise funds: Erwin said the county’s water enterprise produced about $3.6 million in operating income, while the solid‑waste enterprise showed an operating loss of roughly $1.3 million that was offset by transfers in of about $1.7 million. The auditors recommended the county periodically evaluate ways to increase enterprise fund revenues or reduce costs to strengthen self‑sufficiency for the solid‑waste fund.

Board response and next steps: Commissioners asked for comparisons to peer jurisdictions and for continued attention to enterprise fund performance. Finance Director Britney White and county staff were commended for the quality of financial reporting; the board received the audit presentation and had no audit findings to act on. The county manager and staff will continue routine financial oversight and consider the auditors’ recommendations on enterprise funds.