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Tega Cay receives clean FY24-25 audit; pension liability discussed
Summary
An independent audit for fiscal year 2024–25 found no evidence of misuse of funds; auditors and council discussed the accounting treatment of net pension liabilities and the city's current contributions toward those obligations.
The Tega Cay City Council on March 16 received a clean independent audit for fiscal year 2024–25, which contained no findings of misuse of public funds. Matt Philips of Philips CPAs and Advisors presented the report to council and staff.
The audit presentation highlighted the city's net pension liability, an accounting entry that reflects the unfunded portion of pension benefits as determined by the state's retirement actuary. Philips said the Governmental Accounting Standards Board requires agencies to report unfunded pension liabilities on their balance sheets to reflect future obligations.
Council members asked questions about the city's contribution strategy. City Manager Charlie Funderburk said the city is currently paying the maximum amount toward the pension liabilities and that it cannot contribute more than permitted under existing rules. Council also discussed the city's negative net position, which represents assets minus liabilities, and how that presentation reflects long-term obligations rather than cash-flow problems.
The audit did not prompt any motions or corrective actions at the meeting; council accepted the report as presented. The city's administrative staff and auditors will continue to monitor pension actuarial updates and reflect those figures in future budgets and financial reports.
