Walker County audit shows $164M net position, flags recurring internal‑control issues

Walker County officials heard a presentation of the FY2025 audited financial statements, which show a government‑wide net position of $164 million as of Sept. 30, 2025, and flagged recurring internal‑control weaknesses.

The county’s auditor told commissioners the $164 million figure reflects both governmental and business‑type activities and is broken into net investment in capital assets (about $120 million), restricted net position (about $14 million) and $28 million in unrestricted net position. "The county ended up with a total net position of 164 million," the auditor said.

The auditor said expenses exceeded revenues for the year, driven by several factors: heavy public‑works spending (including $14 million from T‑SPLOST), roughly $5 million in ARPA expenditures that were recognized during the year, higher public‑safety costs largely tied to a $5 million increase in pension liability after reopening the pension plan, and one‑time payouts related to a change in PTO policy. "One key difference is we’re expensing resurfacing as maintenance going forward," the auditor added, describing an accounting change that raised current‑year expenses.

Commissioners were told the general fund recorded a roughly $2 million revenue increase and about $6 million in higher expenditures; despite that, the county had about 8.19 months of unassigned fund balance on hand as of Sept. 30. "At 9/30/25 the county had 8.19 months of unassigned fund balance," the auditor said.

On internal controls, the audit found no material weaknesses but reported two recurring significant deficiencies: limited segregation of duties in some small offices and untimely deposits in at least one elected official’s office. The audit recommended management consider staffing or compensating controls in small operations and ensure regular deposit procedures. "There were two significant deficiencies noted in internal control," the auditor said, noting both are common in smaller governments.

The county also underwent a single‑audit of federal awards after expending about $8.5 million in federal funds in the fiscal year (most tied to the federal coronavirus state and local fiscal recovery fund). Auditors reported no compliance findings for the major programs tested.

County finance staff and commissioners discussed timing issues in which some cash payouts occurred after fiscal year end and therefore appear differently in the audited statements. For example, a cash payment related to reopening retirement benefits cleared after Sept. 30 and will appear in the next fiscal year’s cash flow even though the actuarial liability was recognized in FY25.

Commissioners asked for clarifications about pension schedules and compensated‑absence balances; staff noted the net pension liability totaled about $4.9 million across governmental and business‑type activities and a compensated‑absences liability of about $1.4 million in governmental funds. The auditor pointed commissioners to the report’s schedules and the management discussion and analysis for more context.

The presentation concluded with a reminder that several new Governmental Accounting Standards Board rules (GASB 101–104 and upcoming GASB statements) are changing disclosures and reporting and that the county should continue cooperating with auditors to implement them.

The board had no immediate action on the audit report itself beyond questions; staff said they would follow up on recommended internal‑control improvements and additional disclosures.

The audit presentation and supporting schedules are available in the county’s bound report; commissioners were directed to the MD&A for a concise narrative explanation of the numbers.