Dayton auditors issue clean opinion; council approves 2024 financial statements

Mike Brooks, a partner with Brooks Watson and Company, presented the City of Dayton’s 2024 audited financial statements to the Dayton City Council, telling the council the firm issued an unmodified (clean) audit opinion on the city’s financial statements. Brooks said the city’s financial statements and disclosures were materially correct and that the city had prepared an Annual Comprehensive Financial Report (ACFR) this year for submission to the Government Finance Officers Association (GFOA).

Brooks summarized key highlights from the audit: maintenance and operations (M&O) property taxes totaled about $4.321 million (an increase of about $154,000 from the prior year), interest and sinking (I&S) taxes totaled about $3.9 million (up roughly $150,000), and sales tax revenue was just under $2.5 million (up nearly $200,000 from the prior year). Federal grant revenues fell compared with the prior year because 2023 included nearly $2 million of ARPA revenue that was not repeated in 2024. The general fund ended the year with a net increase in fund balance of $577,000, reversing an anticipated use of fund balance for the year.

Brooks also reviewed proprietary funds (water and sewer, fiber, refuse). He noted a $2 million transfer into the water and sewer fund tied to EDA-funded utility infrastructure; excluding that nonrecurring transfer, the utility fund remained in a positive position for the year. The fiber fund continued to operate at a loss from operations but improved in 2024 with transfers in from debt service; Brooks said the fund was not yet self-supporting. The refuse fund showed a modest positive change in net position.

The firm found the city in compliance with the Public Funds Investment Act and said the city qualified for a single-audit because it expended more than the federal threshold on grant activity; the major federal program was an EDA grant with expenditures just under $2 million, and Brooks said the auditors found no grant-specific compliance findings.

After the presentation, a councilmember moved to approve resolution R2025-12, adopting the 2024 final audit report; another councilmember seconded the motion and the council voted to approve the resolution.

The council thanked finance staff for preparing the report. Brooks closed by noting the ACFR includes a statistical section that provides 10-year comparative data and other background for users of the financial statements.