Town earns ‘clean’ audit for 2025
Farragut’s Board of Mayor and Aldermen received a “clean” bill of financial health for fiscal year 2024-25, according to an audit presented during the board’s meeting Thursday, Jan. 22.
“I’m happy to report that we have an unmodified opinion again this year,” said auditor,
Travis D. Lowe, vice president and CPA with Pugh & Company, P.C.,
in Knoxville. “That means we have a clean opinion.
“In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the fiduciary activities, each major fund and the aggregate remaining fund information of the Town, as of June 30, 2025, and the respective changes in the financial position and the respective budgetary comparison statement for the general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America,” he wrote in his auditor’s report to the Board.
“For the record, I thoroughly enjoyed reading [the report],” said Vice Mayor Scott Meyer, a CPA.
“Ultimately, management is responsible for the financial statements,” Lowe told the Board. “Our job is to
independently evaluate the financial reporting and accounting applications."
The Town’s annual Comprehensive Financial Report was prepared by interim finance director and treasurer Michelle Pence, who has since transitioned the role to newly hired finance director Tessa Cortes.
“We do a significant amount of detailed test work, looking at invoices and things behind the scenes,” Lowe said. “But, we also evaluate internal control structure.”
He added the internal control also received a clean opinion.
“Also, because of the significant amount of federal grants coming in now, we’re required to do a separate compliance audit for federal expenditures,” Lowe said. “That is also a clean opinion.”
With that, the report stated, “The assets and deferred outflows of resources of the Town exceeded its liabilities and deferred inflows of resources at June 30, 2025, by $144.1 million (net position).
“That’s an increase of $20 million from FY 2024,” Lowe said.
Of the $144.1 million, “$64.6 million — unrestricted net position — may be used to meet the government’s ongoing obligations to citizens and creditors,” Lowe said.
At June 30, 2025, he said, “The Town’s governmental funds reported combined ending fund balance of $66.9 million.
About 52 percent of this total amount -- $34.5 million – is unassigned fund balance available for spending at the government’s discretion, according to Lowe’s report.
Financial Highlights
• As of June 30, 2025, the Town’s net position totaled $144.1 million, an increase
of $20 million from FY 2024.
• Of that amount, $64.6 million was unrestricted net position, meaning it may be used to meet the Town’s ongoing obligations.
• The combined ending fund balance for all governmental funds was $66.9 million.
• The unassigned fund balance available for discretionary spending was $34.5
million, representing about 52 percent of the total fund balance.
• The general fund’s total unrestricted fund balance was also $34.5 million, equating to 347 percent of the year’s $9.9 million in general fund expenditures.
• The Town has no outstanding long-term debt. Long-term liabilities include $759,000
in compensated absences and $3,000 in lease
liabilities.
• Total assets government-wide reached $149 million, an increase of more than
$17.5 million from FY 2024.
• Total liabilities were $4.5 million, a decrease of nearly $3 million from the previous year.
