Kannapolis receives financial recognitions

Published 12:00 am Sunday, June 9, 2024

KANNAPOLIS — The city of Kannapolis recently received recognition that its financial health is strong. The city received an award for its budget and a “clean audit” award, both indicators of the financial strength of the city.

First, the Government Finance Officers Association (GFOA) has presented the Distinguished Budget Award to the city of Kannapolis. This is the 23rd consecutive year the city has received this honor.

The award is given to municipalities who publish a budget that is a policy document, an operations guide, a financial plan, and is used as a communications device. The Kannapolis budget was found to be proficient in those four categories and met 14 mandatory criteria in order to achieve the award.

The GFOA also presented the city with special recognition for its long-range operating financial plan. The long-range financial plan for the city’s operating budget including forecasts, trends, or other data reflective of the city operating budgets for at least three years beyond the budget period.

Secondly, the city’s recent audit report of its 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) and a stable property tax base which continues to grow. The state requires Kannapolis have a minimum of 8 percent of the general fund in the fund balance in case of emergencies or unexpected expenses.

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.

For more information on the city’s budget and audit, go to https://www.kannapolisnc.gov/Government-Departments/Finance