Mebane receives clean audit for FY 2023–24; council accepts annual financial report

The City of Mebane received an unmodified (clean) audit opinion for the fiscal year ended June 30, 2024, and the Mebane City Council voted Jan. 6 to accept the audited annual comprehensive financial report and the popular annual financial report.

Patricia Rhodes (S14) of Stout, Stuart, McGowan & King told the council the audit was conducted in accordance with generally accepted auditing standards and that the auditors rendered an unmodified opinion and had no material weaknesses or significant deficiencies to report. She noted that a single-audit compliance component was required because of federal grant expenditures (mainly ARPA funds) and that those compliance reports are included in the packet.

Finance staff (Daphna, S1) reviewed highlights: total city assets exceeded liabilities by about $166 million, total net position increased roughly $16.3 million year-over-year, and the general fund finished the year with revenues about 3% over budget; the city reported an unassigned fund-balance ratio and other reserve metrics and discussed fund-balance policy goals (the policy target of 33% and a council discussion of a 5% limit for using fund balance to balance upcoming budgets).

A council member moved to accept the financial reports as presented; the council seconded and carried the motion by voice vote. Council members thanked staff and the auditors for their work.

Why it matters: an unmodified audit opinion indicates the auditors found the financial statements free of material misstatement and provides assurance to elected officials and the public on the city's fiscal reporting and internal controls.

What’s next: staff and council will use these audited figures in upcoming budget work sessions and in planning for capital and debt decisions.