The City of Andalusia increased its net position for the eighth consecutive year, the city’s audit for the fiscal year ending in 2022 showed.
Missy Pierce, CPA, and Gail Hayes, CPA, from Rabren, Odom, Pierce and Hayes, P.C. presented a draft of the city’s audited financials for fiscal year 2022 earlier this month. The auditors reported no findings.
Pierce said the City of Andalusia increased its net position by $3.5 million, as compared to FY 2021, partially because a strong economy produced a 7 percent increase in sales tax revenues.
“The city is in the strongest financial position it has ever been in,” Mayor Earl Johnson said. “This is over-the-top good news for the city, and it is because of the guidance of the council and the contributions of everyone who works for the city.”
Other highlights of the audit included:
• The City had a combined ending fund balance of $31.1 million, an increase of $13.1 million from the previous year.
• The City had a $14.3 million increase in the cash balance, approximately 32 percent of which is unrestricted.
• The City made payments of just more than $4.7M on its long-term debt.
• The City’s program expenses increased by only 4.7 percent over the previous year.
Pierce said the auditors’ report is “unmodified,” which is the best that can be given. It took longer than usual to complete, she said, because of new requirements for audits from the federal government.
John Thompson, city administrator, said the audit reflects a months-long process that began in January.
“They really dig into every aspect of the city’s finances,” he said. “If the council approves a development agreement, the auditors want to sit down and have us explain it. It’s significant that this audit was completed without a finding, a citation or anything irregular going on in this $21 million annual business.”
The council officially adopted the financial statement at its October 17, 2023 meeting.