Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Finance topic
No spam. Unsubscribe anytime.
City auditor gives unmodified opinion; audit flags SPLOST administrative charges and related‑party payments
Summary
The city's FY2024–25 financial statements received an unmodified opinion, auditors reported strong reserves but flagged repeat findings on administrative fees charged to SPLOST/T‑SPLOST funds and disclosed payments of $151,580 to Helper B LLC, an entity linked to the mayor’s family that the audit noted was disclosed in the record.
The City of McDonough’s independent auditor issued an unmodified opinion on the city’s financial statements for the year ending June 30, 2025, but raised several audit findings the council discussed at its July 20 meeting.
James L. Whitaker, the auditor, told the council the general fund held about $31.19 million in cash or investments as of June 30, 2025, leaving a fund balance equal to roughly 139.3% of recommended reserves. “We have completed the audit for the city's financial statements for the year ending 06/30/2025 and have issued an unmodified opinion,” Whitaker said, adding that the city’s financial position is strong.
Council members focused questions on repeat findings identified in the audit. Whitaker and staff described two repeat issues: the administrative fee charged to SPLOST and T‑SPLOST funds and recording of accounts payable for construction projects. Whitaker said the $165,000 item appears to reflect engineer costs for T‑SPLOST oversight, but the $40,000 administrative charge needs a clearer formula and documentation. “You're just not pulling it out of the sky somewhere,” Whitaker said, urging a defensible allocation method for administrative fees.
Council members also asked about related‑party transactions. The audit notes the city had payments to Helper B LLC, a company identified as owned by the daughter of Mayor Sandra Vincent, totaling $151,580 during the fiscal year; staff and the audit report say the mayor disclosed the relationship and that the contract work was overseen by the city administrator to preserve separation of duties. The auditor confirmed payments and that, per the report, services were overseen by the city administrator and that no amounts were outstanding.
The council thanked Whitaker for the presentation and for his years of service; Whitaker noted he is retiring after more than four decades serving the city. Members asked staff to follow up on the administrative fee methodology and to return with clearer documentation of how the SPLOST/T‑SPLOST administrative allocations are calculated.
What’s next: staff said they will prepare clearer consent‑agenda descriptions of funding sources and provide further documentation on the SPLOST administrative fees and the Helper B LLC contract for the council to review.
