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Auditors give Charlotte an unmodified opinion but note a material weakness, pension and OPEB liabilities remain
Summary
External auditors issued an unmodified opinion on the City of Charlotte’s FY 2024–25 financial statements, reported a material weakness the city will address by June 30, 2026, and highlighted combined pension and OPEB liabilities of about $10.2 million.
Charlotte — Auditors presented the City of Charlotte’s FY 2024–25 financial audit on Jan. 12 and issued an unmodified opinion on the financial statements, the highest level of assurance available, while also identifying a material weakness that city officials plan to correct by June 30, 2026.
Dane Porter of the auditing firm told the council the firm issued an "unmodified opinion" and reviewed key indicators: a governmental current ratio of 5.2 and an extremely liquid business-type current ratio of 40. He said the city's combined pension and OPEB liabilities total about $10.2 million, a slight improvement from $10.3 million the prior year.
Porter said general fund revenues were about $7.7 million for FY 2025 (down roughly 2.8% from FY 2024) while expenditures were about $7.2 million (up roughly 4.3%), and the general fund used about $163,814 of fund balance — notably better than an amended budget projection to use $1.3 million. The unrestricted fund balance stood at 44% of annual expenditures, above the Government Finance Officers Association recommended range of 17–20 percent.
When asked by council members, Porter rated the City's financial condition overall as a "B-/C+," noting the financial statements were fairly presented and that pension liability pressures are common among municipalities. He confirmed the material weakness identified during the audit is being addressed with consultants and scheduled for correction by June 30, 2026.
The council received the auditor’s report by motion and vote.
