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Rushton delivers clean 2025 audit; recommends writing off $2.79 million in long‑standing interfund balances
Summary
Rushton auditors presented a clean (unmodified) audit for fiscal 2025 and recommended that the county remove accumulated interfund balances of roughly $2.79 million (water and airport funds) as a one-time bookkeeping cleanup to be implemented in next year’s audit; the recommendation has no cash impact.
The county’s external auditors presented a clean opinion on the fiscal‑year 2025 financial statements and recommended a one‑time cleanup of long‑standing interfund balances.
Sam Le of Rushton told commissioners the firm issued an unmodified opinion dated June 5, 2026, and highlighted stable capital investment, rising restricted balances and a modest decrease in unrestricted net position. “I’m happy to report an unmodified opinion on on every opinion unit,” Le said during the presentation.
The audit showed the county’s net investment in capital assets at about $60 million (up roughly $2 million) and SPLOST receipts materially higher this year. Revenues rose about 3% while total governmental expenditures increased about 5.9%, led by public safety. The auditor noted enterprise funds (water and airport) show operating losses when depreciation is included but positive operating cash flow when depreciation is added back.
Why it matters: auditors identified an accumulation of interfund receivable/payable balances on the books since about 2014 that total roughly $2.79 million — approximately $1.5 million in the water fund and $1.2 million in the airport fund. Le said the balances have persisted for years and that management concurs with a cleanup approach: “these are unchanging… this is really just a cleanup,” he said, recommending the county remove the balances during next year’s audit. He emphasized the adjustment would have zero cash impact and would simplify accounting going forward.
Commissioners asked for follow‑up and thanked the finance department and auditors for the work. Finance staff said the write‑off would be recorded as part of the 2026 audit process; the auditors said the recommendation does not change the report just presented.
The presentation also included three internal‑control findings (one characterized as a material weakness, described as potential rather than indicating actual loss) and a clean single‑audit (Uniform Guidance) for federal recovery funds. Le advised the board to prepare for pending GASB standards that will affect how interfund activity and some enterprise fund disclosures are reported in future statements.
Next steps: auditors will work with management to implement the cleanup during the 2026 audit cycle; commissioners and staff may follow up with specific accounting entries and policy adjustments before the next audit.
