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Roanoke Rapids council accepts independent audit showing strong fund balance
Summary
An independent auditor told the Roanoke Rapids City Council the city ended FY2024 with a $11.8 million unassigned fund balance (67% of annual expenditures) and an unmodified opinion; council voted to accept the audit.
The Roanoke Rapids City Council on Dec. 3 unanimously accepted an independent audit that found the city in a strong financial position, with an unmodified audit opinion and a sizable reserve.
Ivan Redmond, the auditor, told the council the city reported $12,375,000 in cash on June 30, 2024, and an unrestricted, unassigned fund balance of $11,800,000, which Redmond said was about 67% of the city's annual expenditures. "In my opinion these financial statements are presented fairly in accordance with generally accepted accounting principles," he said.
Why it matters: North Carolina requires a minimum fund balance of 25% and cities of similar size average about 46%. Redmond noted the city's fund balance has risen from roughly 26% in 2021 to 67% in the most recent year, a change he described as a "good financial position." The report also shows total general fund revenues of $21,000,000 for the year (up from $18.7 million the prior year), property tax collections of $8,700,000 with a 99.21% collection rate, and federal and state grant receipts of $508,000 and $612,000 respectively.
The auditor called out components of long-term liabilities including note borrowings and special revenue bonds (noting the special revenue bond balance decreased during the year) and reviewed pension and retiree health liabilities reported in the notes. He said the audit found no significant deficiencies or departures from accounting rules and no material findings related to grant compliance.
Council action: Mayor Pro Tem Tim Bryant moved to accept the audit; the motion was seconded and approved by voice vote. Bryant thanked the auditor and staff for completing the work; a council speaker later asked the mayor to extend the council's appreciation to the audit team.
The council recorded no additional recommendations in the meeting and accepted the audit as presented. The city will post the audit as required and continue its financial oversight through routine budget amendments and reporting.
