City acknowledges 2024 comprehensive financial audit; auditors issue unmodified opinion

The City of Hot Springs board formally acknowledged receipt and review of the 2024 Annual Comprehensive Financial Report (ACFR). Auditors reported an unmodified (clean) opinion and no reportable internal-control findings.

Becca Kaiser of Forbus Mazars delivered the audit highlights and told the board, “it was an unmodified clean opinion.” The audit covered the city’s basic financial statements and major federal programs; the auditors reported no material weaknesses and no findings for the ARPA and CDBG major programs the city received.

Kaiser summarized key points: governmental operating grants and contributions fell as federal ARPA obligations wound down in 2024; capital grants for business-type activities rose due to a state pass-through ARPA grant; public-safety expenses rose largely because of increased payroll costs; and public-works expenses rose due to street improvement activity. She also noted the city has received the Government Finance Officers Association (GFOA) Certificate of Achievement in Financial Reporting for 31 consecutive years and had filed again this year.

Karen Scott, finance director, told the board that Arkansas statute 10-4-418 requires the governing body to review the audit and take appropriate action on findings and recommendations; the auditors presented the report and the board acknowledged it. Directors asked questions about sales-tax comparables and recovery from the COVID-era downturn; the auditors said many jurisdictions still use 2019 as a baseline for pre-COVID comparisons.

The board voted to acknowledge the ACFR by roll call; the resolution acknowledging review of the audit (R-25-151) was adopted unanimously.