The City of Stockbridge received the highest level of audit assurance available when independent auditor Mauldin & Jenkins LLC issued an unmodified, or clean, opinion on its financial statements for the fiscal year ended December 31, 2025. This significant development for municipal financial management was presented to the Stockbridge City Council during its public meeting on Tuesday, September 29. An unmodified opinion serves as the highest level of assurance an independent auditor can issue, confirming that the City’s financial statements present its financial position fairly, in all material respects, in accordance with generally accepted accounting principles.
What Changed in the 2025 Financial Review
The 2025 financial statements reflect notable changes and strong growth across multiple key metrics for the municipality, which celebrated 100 years of cityhood in 2020. According to the audit report, the General Fund balance reached $17.9 million at year-end, which equals approximately 72 percent of annual General Fund expenditures. This increase over the prior year is largely attributed to reimbursements made to the General Fund from SPLOST V for project costs that were paid in earlier years.
Furthermore, the City reported a total net position of $156.0 million, representing an increase of $14.4 million over the prior year. Unrestricted net position also experienced substantial growth, rising to $23.7 million, up from $9.3 million in the prior year. In addition to the general financial statements, the City received an unmodified opinion regarding its compliance with federal requirements for its major federal program, the Coronavirus State and Local Fiscal Recovery Funds under the American Rescue Plan Act (ARPA).
Key Benefits and Financial Health
Independent auditors reported full cooperation from City management and staff throughout the auditing process, noting zero disagreements on accounting or financial reporting matters. City representatives highlighted the broader implications of these metrics. A clean opinion confirms that the City’s financial statements are reliable, and the growth in net position demonstrates that overall financial health is improving.
The substantial rise in unrestricted net position from $9.3 million to $23.7 million gives local leadership greater operational flexibility. Maintaining a General Fund balance of $17.9 million—representing 72 percent of annual expenditures—provides a robust buffer for future municipal operations and unexpected economic conditions.
Risks or Limitations: Internal Control Findings
Despite the clean opinion on the financial statements and ARPA compliance, the independent audit identified five material weaknesses in internal controls concerning how transactions were recorded and reconciled at year-end. Specifically, these weaknesses involved:
- Receivables and revenue
- Depreciation
- Capital assets
- Interfund activity
- The accounting for and approval of amphitheater expenditures
To address these concerns, the auditors made necessary adjustments so that the final audited statements remain accurate. City management concurred with each recommendation and provided corrective actions for all five findings. City representatives acknowledged the need for vigilance, noting that auditors were clear about being mindful of year-end closing procedures to ensure stronger future closings, a recommendation the administration has accepted.
Business Implications for Municipal Governance
For municipal leadership and stakeholders, achieving an unmodified opinion validates the core financial reporting of Stockbridge while highlighting critical areas for administrative refinement. The identification of material weaknesses underscores the importance of rigorous internal reconciliation processes, particularly regarding complex capital asset accounting, depreciation schedules, and specific entertainment venue expenditures like the amphitheater.
Corrective actions implemented by management will determine how effectively the City resolves these control vulnerabilities before the next reporting cycle. Ensuring tighter oversight of year-end closing procedures will be vital to sustaining financial transparency and avoiding recurring control issues.
What to Watch Next
As the City of Stockbridge moves forward following the presentation on September 29, stakeholders will monitor the implementation of corrective actions for the five identified material weaknesses. Watching how management updates its reconciliation workflows for receivables, revenue, capital assets, interfund activity, and amphitheater expenditures will provide insight into the City’s administrative responsiveness.
Continued monitoring of the General Fund balance and unrestricted net position will also reveal whether the municipality can sustain its positive fiscal trajectory while addressing internal control protocols.