Kingsport finances receive clean audit
Kingsport’s finances received a clean bill of health last year with auditors finding no significant deficiencies or instances of noncompliance.
City finance officials last month presented the Board of Mayor and Aldermen with an overview of Kingsport’s latest audit. The Annual Comprehensive Financial Report (ACFR) is a review of the city’s finances for the prior fiscal year, which ran from July 1, 2021, to June 30, 2022.
The ACFR is a detailed review of city government (including schools, utilities, and economic development). The document covers 36 separate funds and all manner of financial issues from cash flow to long-term debt to governmental assets.
Auditors offered a “clean opinion” again this year on Kingsport’s finances, the highest opinion they can issue. They found no significant deficiencies or instances of noncompliance during their review of the city’s financial controls and operations.
Some highlights from this year’s ACFR include:
- A rainy-day fund of $24.5 million – the highest level ever. Kingsport aims to keep 15% to 20% of its total fund balance in reserves. Currently, Kingsport sits at 27%.
- Kingsport collected nearly $61 million in property taxes (up from $60.6 million in 2021) and $46.5 million in sales tax (up from $41 million in 2021).
- Kingsport made $12.9 million in general fund debt service payments. Kingsport’s governmental fund debt stood at $114 million in fiscal year 2022.
- Moody’s Investor Service and Standard and Poor reaffirmed their Aa2 and AA ratings for the city respectively.
- For the 24th year, Kingsport finances received a clean opinion – the highest opinion offered – and for the 22nd straight year the city’s 2021 ACFR received a certificate of achievement for excellence in financial reporting.
To view the entire ACFR, please click here.