City of Yuma receives clean FY2024 audit; auditors flag sales-tax timing issue, development-fee audit finds no exceptions

The City of Yuma received an unmodified (clean) opinion on its fiscal year 2024 financial statements, but external auditors reported one material weakness related to the timing of transaction privilege tax (sales tax) revenue recognition, Baker Tilly principal auditor Brian Hemmerly told the City Council on Feb. 19.

The auditor reported the opinion had been issued on Jan. 28, 2025, for the year ended June 30, 2024, and said the only finding in the Government Auditing Standards Compliance Report was a restatement tied to when the city recognized certain transaction-privilege-tax revenues at year-end. "There was a restatement for the equity at the city for net position related to transaction privilege tax," Hemmerly said. "It's really a timing issue of revenue."

Why it matters: an unmodified opinion means the auditors found the financial statements free from material misstatement. The reported material weakness affects internal controls over the timing of revenue recognition for sales tax at fiscal year-end and alters receivable and equity presentation, though Hemmerly said the total revenue recognized over time is largely unchanged.

Auditor findings and context

Hemmerly told council the audit provides reasonable — not absolute — assurance that the statements are materially correct. He said auditors found no other internal control matters requiring report and no disagreements with management. Among highlights, Hemmerly read figures from the Management's Discussion and Analysis: the…