City audit reveals financial improvements and significant deficiencies in Medicaid program

During the recent Broomfield County City Council session held on July 9, 2025, significant discussions centered around the city’s financial audit results and upcoming changes in financial reporting standards. The meeting highlighted the city’s financial growth and the importance of maintaining robust internal controls.

The audit presentation revealed a remarkable increase in the city’s financial position, growing from approximately $1.2 billion to nearly $4 billion over a five-year period. This growth underscores the city’s resilience and effective financial management, even amid challenges posed by the pandemic.

Key disclosures from the audit were emphasized, with recommendations for council members to focus on specific sections of the Annual Comprehensive Financial Report (ACFRA) that are deemed crucial for understanding the city’s financial health. The auditors also outlined upcoming implementations of Governmental Accounting Standards Board (GASB) regulations, particularly GASB 103 and GASB 104, which will enhance financial reporting and disclosure of capital assets. The city has a year to prepare for these changes, and collaboration with the finance department will be essential for a smooth transition.

The audit results included a discussion on the single audit, which assesses compliance with federal programs. The auditors reported a clean opinion on three major programs, indicating strong compliance. However, they noted one material weakness related to internal controls, specifically concerning the correction of an error that necessitated significant audit adjustments. Additionally, a significant deficiency was identified in the Medicaid program, where required notifications were not sent within the mandated timeframe.

The session concluded with a summary of the auditors' findings, reinforcing the importance of addressing the identified deficiencies to ensure continued financial integrity. The council's proactive approach to these issues will be vital in maintaining public trust and effective governance as the city navigates its financial future.

Overall, the meeting underscored the city’s commitment to transparency and accountability in its financial practices, setting the stage for ongoing improvements and compliance with evolving standards.