Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit topic
No spam. Unsubscribe anytime.
Pineville audit shows strong reserves and unmodified opinion; auditor warns state will collect 2% sales tax on commercial utility accounts
Summary
External auditor Stephen McKay presented Pineville’s 2024–25 audit, reporting an unmodified opinion, roughly $42 million in cash and $8.6 million change in net position; the auditor said a state rule will add a 2% sales-tax collection on commercial utility accounts starting with February billings. Council accepted the audit.
Stephen McKay, auditor with Roser McKay and Willis, told the Pineville City Council on Jan. 13 that the city’s 2024–25 financial statements earned an unmodified audit opinion and that the city finished the year with a strong cash position.
“You got an unmodified opinion,” McKay said, adding that the city closed the fiscal year with just under $42,000,000 in cash and cash equivalents and reported an $8,600,000 change in net position. McKay said those figures reflect both cash and investments in infrastructure and that capital contributions were unusually high last year, about $4,400,000.
McKay said the audit team performed required federal single-audit work and found no compliance issues. He noted the city had addressed prior-year concerns about related-party transactions, credit-card policies and public-bid procedures and that the auditors did not see repeats of those findings in the current report.
McKay also told the council that a state requirement will begin to affect commercial utility customers: “there’s been some new laws … the city is required to begin charging commercial users” a 2% sales tax on utility bills. He said the change applies only to commercial accounts and that the city will remit collections to the state; “the city is not getting anything out of it,” he added.
Council members asked clarifying questions about the new commercial-tax collection and thanked the audit team. The council then voted to accept the audit report by motion; the acceptance carried on a voice vote.
Why it matters: An unmodified opinion means the auditors found the city’s financial statements materially correct for decision-making. The reported cash reserves (roughly nine months of operating expenses by McKay’s calculation) give Pineville flexibility for near-term shocks, while the high level of grant-funded capital contributions reflects active infrastructure investment.
The auditor recommended continued attention to controls and compliance; staff and the council accepted the report and will incorporate its findings into budget and capital-planning work going forward.
