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Johns Creek audit returns clean opinion; auditors and finance director clarify FY2025 surplus
Summary
Director Hora presented the FY2025 audit showing an unmodified (clean) opinion; staff explained accounting adjustments and clarified the year-end surplus increased to about $5.2 million after audit close.
The Johns Creek City Council received the city's FY2025 final audit on March 30, with Director Hora telling the council the audit carried an unmodified, clean opinion and that the city remains in a strong financial position.
"The final audit for FY 2025 contains an unmodified clean opinion within the auditor's opinion letter," Director Hora said in presenting the annual comprehensive financial report. She described an operating surplus reported in the audit and various reserve components, including a roughly 25% policy reserve. During questions, staff clarified that the audited year-end surplus is approximately $5.2 million. "But the FY 2025 year end, we did come in with a surplus of 5,200,000," Director Hora said.
Auditor Josh Carroll of Walden and Jenkins explained how recent accounting standard changes were recorded. Carroll said an adjustment for GASB guidance on compensated absences was recorded retroactively as a one-time change that affects net position on the government-wide statements but does not reduce the general fund. Council members pressed for clarity on fund-balance trends and the city's joint-venture reporting for CHATCOM; the auditor and staff said they would provide follow-up detail on the CHATCOM equity position and how GASB presentation can make lingering liabilities appear larger than cash-flow realities.
Next steps: staff will circulate the audit package and respond to follow-up requests for historical notes and CHATCOM reporting details.
