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Auditors issue unmodified opinion on Spartanburg's 2025 financial report; note transit-fund timing error
Summary
City auditors delivered an unmodified (clean) opinion on Spartanburg's 2025 Annual Comprehensive Financial Report, reporting a roughly $11 million unassigned general fund balance and about $94 million in capital additions while noting a prior-year restatement for the transit fund and a late single-audit compliance filing.
The city of Spartanburg received an unmodified ("clean") opinion on its 2025 Annual Comprehensive Financial Report, city auditors told the City Council during its March meeting.
"We've issued what is considered an unmodified opinion," David Phillips of CPA Green Finley & Call LLP told council members as he summarized the audit findings. The audit shows the city's unassigned general fund balance rose to about $11,000,000, roughly 21% of 2025 general fund expenditures, and general fund revenues increased by roughly $2.1 million compared with the prior year.
Phillips said the city recorded about $94,000,000 in capital-asset additions in 2025 — driven by projects including the baseball stadium, airport improvements and a West Main fire-station project — and warned that increased capital activity will raise depreciation expense in future years.
The auditors also disclosed two compliance and reporting items. First, expenses in the transit fund were drawn down twice in the prior year, which the auditors said required restating the prior-year financials to correct timing and revenue recognition. "That revenue is gonna come in this year; it's really a timing deal," Phillips said. Second, the airport improvement single-audit filing (SF-425) was submitted late, a compliance lapse auditors noted to satisfy federal reporting rules; they said the late filing did not indicate misspending but did require reporting.
Phillips told the council the management letter contained no unresolved disagreements with staff. Mayor Jerome Rice thanked the audit team for their work and said the administration and finance staff would continue addressing the administrative items the auditors identified.
Next steps: the audit report will be finalized in printed form and posted to the city website; staff and council discussed follow-up reconciliation of multiple restricted funding "buckets" tied to large capital projects to ensure available project balances are tracked and reconciled.
