City auditor gives Newnan an unmodified opinion; city reports healthier fund balance

Nichols Collie & Associates presented the City of Newnan’s audited financial statements for fiscal 2025 and issued an unmodified opinion — the standard “clean” audit outcome municipal finance officers seek. Greg Chapman, lead partner for the firm’s governmental practice, told the council the audit included two standard letters: financial statements and a report on controls and significant accounting policies. He said there were no disagreements with management and no difficulties that rose to the level of reporting.

Chapman noted the city also exceeded the federal single-audit threshold this year because it spent more than $1 million in federal grant funds, triggering an additional single-audit report. The city elected to compile an Annual Comprehensive Financial Report for 2025 and submitted it to the Government Finance Officers Association; Newnan received a GFOA certificate of achievement for the submission — the city’s first such recognition.

Key figures Chapman cited included: general-fund revenues of about $39.5 million for 2025 (up roughly $1.5 million year over year), expenditures of about $38.3 million (down approximately $1.9 million), and an ending general-fund balance just under $31 million, or roughly nine months of operating expenditures. Chapman explained a healthy fund balance helps the city manage cash flow through disasters and reimbursement delays (such as FEMA), and can avoid short-term borrowing.

Councilors asked questions and offered congratulations to finance staff for pursuing higher transparency. No follow-up actions were required from the council at the meeting other than receiving the audit presentation.