Local auditor reports clean Perry 2025 financial audit

PERRY — Perry received a clean bill of financial health for 2025, as revealed by an auditor’s presentation to Mayor Randall Walker and the city council Tuesday night.

The audit was done by Davey King, Senior Manager at Mauldin & Jenkins. He said their job as an auditor is to provide opinions on the city’s financial statements.

The city received a clean, unmodified opinion, the highest level of assurance King can provide as its external auditor. This means they considered their financial statements fairly presented in accordance with generally accepted accounting principles.

King explained that one of the two other reports they issue is the yellow book, which examines the city’s compliance with laws and regulations. He shared there were no issues to report.

Another report is the single law report, issued when the city has paid over $750,000 in total federal funds. According to King, the city had about $24.4 million in federal awards last year.

They then conducted an audit in two major programs. He said there were no issues to report.

At the citywide level, King reported assets and deferred outflows of about $239 million and liabilities and deferred inflows of about $117 million, resulting in a net position of $99 million.

King called the general fund the soul of city operations. Property taxes make up the largest share, about $14.4 million or 44% of the total.

General government and public safety were the biggest expenses. The general fund’s balance is $5.4 million, about two months’ operating costs.

The water and sewer fund had assets of about $112 million, liabilities of $56 million, and a net position of $56.6 million.

King said this was a 6.8% increase from last year and the city did a great job with the fund.

The auditor was independent of the city, as required by auditing standards. King said they had no difficulties with management and that there were no uncorrected misstatements.

After the presentation, the floor was open for questions. Councilmember Dan Peterson said he has been most concerned about the water and sewer system. Peterson and King clarified that customers have paid approximately $12.4 million in water and sewer fees.

Operating expenses for wastewater treatment and sewer system maintenance totaled $7.7 million, Peterson clarified.  

Peterson said about $750,000 will affect the FY25 budget and $50 million in treatment plant debt payments will begin.

“We’ve got a lot of debt that’s coming at us. It’s great that we have a new operation plant; we just don’t have the customers to pay for all of this yet. Over time that will improve and cover itself.” he said.

Councilmember Amy Fouse said the city may lack policies and procedures, such as a minimum fund balance policy and a debt policy. She asked King if he had any concerns, and he replied that he did not. He said since they have an even budget and are doing well, there is no need.

Fouse then asked whether King had any concerns the city should be aware of, and King replied, “No.” She also asked if there is any area he sees the city needs to improve or strengthen. He said there are always challenges as the city grows, but he encountered none during the audit.

Walker shared he was delighted the city continues to receive a clean audit.

To view the Annual Comprehensive Financial Report click here. 

The Mayor and Council will hold their pre-council meeting at 5 p.m. and the regular council meeting at 6 p.m. on March 3. Everyone is invited to attend, and the agenda can be found here. Both meetings are also livestreamed on YouTube.