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Auditors give Loganville an unmodified FY25 opinion, flag ARPA spending deadline
Summary
External auditors reported a clean (unmodified) opinion on Loganville’s FY25 financial statements and highlighted strong fund balances, while reminding council that about $1.3 million in ARPA‑related grant revenue must be spent by December 2026.
David McCoy, an external auditor with McNair McMill Middlebrooks, told the Loganville City Council the firm issued an unmodified ("clean") opinion on the city’s FY25 financial statements and attached a federal compliance audit that included testing of the American Rescue Plan program. "The opinion that was issued on this set of financial statements is what we call an unmodified opinion. That's a clean opinion," McCoy said.
The auditors showed five‑year trends indicating that revenue has grown faster than expenditures; McCoy said the general fund's largest asset was cash—just over $18 million—and that the unassigned fund balance meets Government Finance Officers Association guidance (roughly two to three months or about 20 percent). He described public safety and public works as the largest expenditure buckets and said the city’s enterprise funds (water, sewer, solid waste) produced sufficient operating income to cover costs.
Council questions centered on accounting changes under new GASB guidance and the treatment of specific transactions. McCoy and colleague Marqua Gale explained a reclassification that prompted a roughly $98,000 budget amendment: properties previously carried as investment or held for resale were reclassified as capital assets because the city did not intend to sell them within 12 months. "When you implement a GASB change, you sometimes must restate beginning balances," McCoy said, explaining that the restatement reflected new guidance on compensated absences and capital asset classifications.
The auditors also noted an unearned grant revenue balance of about $1.3 million in a special revenue (opera) fund that must be spent by December 2026. McCoy warned council that intergovernmental revenue tied to ARPA will likely decline after those funds are used and that the city should plan accordingly.
On internal controls and compliance, McCoy said the audit identified no material weaknesses, no significant deficiencies and no noncompliance for the tested programs, and reiterated that an audit is a risk‑based tested opinion—not a 100 percent transactional forensic review. Council members thanked the finance staff for the work that produced the clean opinion.
The council accepted the audit presentation and later approved payment and engagement of the same audit firm for fiscal year 2026.
