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Independence accepts FY 2023–24 audited financials; auditors issue clean opinion but flag budget presentation issues
Summary
Auditors delivered a clean opinion on the city’s FY2023–24 financial statements but identified minimum-standards findings on budget presentation, contingency classifications and appropriation-category overages; council accepted the report and directed staff to address findings.
The Independence City Council accepted the city’s audited financial statements for the fiscal year ended June 30, 2024, after a presentation by Finance Director Rob Williams and auditors from Aldridge. The city received a clean (unmodified) opinion from the auditors, who also reported several compliance and presentation findings required by state minimum standards.
Rob Williams, the city’s finance director, walked council members through the structure of the report and encouraged readers to review the management’s discussion and analysis and the notes to the financial statements. Cyrus Ward, an audit manager with the CPA firm, told the council a clean opinion was being issued and explained the audit’s focus on whether the financial statements were materially accurate.
Auditors and staff highlighted several “minimum standards” findings required by state law. Those included the classification of reserves and future expenditures, the use of contingency budget categories inappropriately, misclassification of interfund loans and several instances where expenditures exceeded appropriation categories (totaling roughly $715,697 across funds on the auditor’s summary). The auditors noted these are common findings among similar jurisdictions but said the city produced sufficient records for the opinion. Council members raised broader budget concerns: one councilor cited the city’s total debt figure in the report — about $35.3 million at fiscal year end — and asked if that level of indebtedness was sustainable.
Staff said some corrective steps already have been incorporated into the FY2025–26 budget document and that the city would return to the council with progress on addressing the findings. Auditors also discussed the city’s treatment of a receivable from MyNet and said the city had conservatively maintained an allowance for doubtful accounts, while noting MyNet was currently meeting its scheduled payments.
After questions and discussion, the council voted to accept the audited financial statements and instructed staff to report on corrective actions for the minimum-standards findings.
