Report - Audit - Mauldin & Jenkins

This document presents the results of the annual audit for the City of Powder Springs for the fiscal year ended June 30, 2025, conducted by Mauldin & Jenkins. The audit resulted in an unmodified ("clean") opinion on the City's basic financial statements, meaning they are presented fairly in accordance with GAAP. The report also includes a compliance report on internal controls and adherence to laws and regulations, as required by Government Auditing Standards.

Key findings include:

• No material weaknesses in internal control were identified.
• A significant deficiency was noted regarding the depreciation of capital assets (Finding 2025-001), where depreciation expense for certain vehicles and equipment from the prior year was recognized in the current year, amounting to $71,385. The City concurs and will implement annual reviews of depreciation schedules.
• The audit of federal awards, including the COVID-19 Coronavirus State and Local Fiscal Recovery Funds ($2,020,458), Highway Planning and Construction ($93,656), Public Safety Partnership and Community Policing Grants ($216,926), Edward Byrne Memorial Justice Assistance Grant ($20,000), and Hazard Mitigation Grant ($72,479), found that the City complied with all major federal program requirements. No material weaknesses or significant deficiencies in internal control over compliance were identified for federal awards, and no audit findings requiring reporting under 2 CFR 200.516(a) were noted.
• The City implemented GASB Statement No. 101, Compensated Absences, during the fiscal year.

The audit confirms the City's financial statements are accurate and compliant with accounting standards, providing assurance to residents that public funds are managed responsibly. A minor internal control deficiency related to asset depreciation was identified but has been addressed by the City.

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