From the office of the Comptroller of State of Tennessee
Honorable Mayor and Board:
We have reviewed the annual financial report of the City of Jackson for the fiscal year ended June 30, 2024, as audited by Mauldin & Jenkins, LLC, Certified Public Accountants. As a result, this report has been filed as part of the public records of the State of Tennessee.
The audited financial statements are the responsibility of management. The following was observed during the review of the financial report.
The business-type activities had a deficit net position balance of $(448,068) at year end. Municipal officials should take steps to ensure they are operating the business-type activities in a fiscally responsible manner.
The Statement of Net Position reported a deficit unrestricted net position balance of $(611,446), $(448,068), and $(105,869) at year end for governmental activities, business-type activities, and the Jackson Transit Authority. Municipal officials should take necessary steps to ensure this deficit is eliminated.
Actual expenditures exceeded the amounts appropriated in the General Fund budget by $1,467,443, the Solid Waste Fund budget by $1,340,485, the Police Drug Fund budget by $706, the Metro Drug Fund budget by $39,985 and the Community Redevelopment Fund budget by $10,957. State statutes, charters, and local ordinances assign responsibility for the budgeting process and establish budgetary authority for municipal expenditures. To avoid potential legal conflicts, municipal officials should authorize all expenditures either in the original budget, in an amendment, or in a supplemental appropriation.
The Contract to Audit Accounts required the audit to be filed by December 31, 2024; however, the audit was not submitted to this office until October 17, 2025. The usefulness of reports issued so long after the year-end is greatly diminished. In addition, late submission violates the reporting requirements of the Comptroller’s Office. Future reports should be filed by the date required by the contract and the Comptroller’s Office. Proactive measures should be taken by the municipalities management to facilitate the timely completion and submission of the annually audited financial statements.
