Board signs audit engagement letter and refers FY25 financials to finance committee

The Board of Aldermen authorized the board president to sign the FY25 audit engagement letter with Sullivan Powers and Company and referred the city’s June 30, 2025 financial report and a review of the purchasing policy to the finance committee. Treasurer Mary Markowski told the board the FY25 financials remain a work in progress and that the engagement letter outlines the audit scope, including a single-audit component because the city exceeded the federal expenditure threshold. The board approved execution of the engagement letter after suspending the rules. Why it matters: The engagement begins the formal audit process that will close FY25 financials and support the FY26 budget process. Treasurer Markowski highlighted that salaries, retirement and benefits account for roughly 65% of the city budget and that local option tax receipts and their uses have been earmarked for paving, sidewalks, pension funding and transfers to reserves. Board action: The board voted to authorize signature of the audit engagement and to refer the June 30 financial report and a review of the city purchasing policy (including bid thresholds) to the finance committee for further examination and recommendation. What’s next: The finance committee will review the June 30 report, purchasing thresholds and other budget items ahead of the FY26 budget process; the auditor will begin fieldwork according to the engagement scope.