November 10, 2015
A recent audit report of the City of Kannapolis’ finances shows the City is financially sound and therefore received a “clean” or “unmodified” opinion. The unmodified opinion from the auditors of Martin and Starnes, an independent auditing firm, means the City has no weaknesses, no issues and no findings that would signal any problems with the financial health of the City.
The audit report found the City has a healthy fund balance (savings account). The state requires Kannapolis have a minimum of eight percent of the general fund in the fund balance in case of emergencies or unexpected expenses. Kannapolis currently has 28.5% or 15 weeks of operating expenses in the fund balance account. (It is the City’s policy to maintain between 25-33% in fund balance).
The City receives an audit each year in order to meet legal requirements, to be transparent and to ensure there are no issues with the accounting procedures of the municipality.