Stacy Hammond, partner and audit director with BT and Co., told the City Council on Aug. 12 that the city's 2024 financial statements "are presented fairly in all material respects in accordance with generally accepted accounting principles." Hammond said the audit was performed in accordance with generally accepted auditing standards, government auditing standards, the Single Audit Act and the Office of Management and Budget uniform guidance.

The auditor presentation summarized three documents delivered to the governing body: the audited financial statements, the single-audit report on federal expenditures, and a letter to the mayor and council describing the audit team's observations and responsibilities. "As a result of performing those procedures, we did determine that the financial statements of the city are presented fairly," Hammond said.

The auditors also reported the city's adoption of Governmental Accounting Standards Board guidance (GASB Statement No. 101) and said they evaluated the city's processes for measuring valuation of investments, accrued compensated absences, self-insurance reserves, the net pension liability from participation in KPERs, and other post-employment benefit liabilities. Hammond said BT and Co. concluded the city "does have a reasonable process in place to measure and report each of those accounting estimates."

Trey Shelton, audit manager, presented the single-audit findings for the city's major federal programs. Shelton said the Continuum of Care program and the Coronavirus State and Local Fiscal Recovery Funds program together accounted for about $19,300,000 of the $24,600,000 in federal award expenditures in 2024. Based on testing, BT and Co. issued an unmodified opinion on compliance for the two major programs, but the single audit identified three findings the auditors described as significant deficiencies related to suspension and debarment, reporting, and subrecipient monitoring. Shelton said all three findings were tied to the SLFRF program and that "we are aware that the city has plans to resolve those findings in the future."

Council members did not raise detailed technical objections during the presentation. Hammond concluded by telling the council that there were no disagreements with management or other reportable difficulties during the audit and that the finance team had been cooperative.

The audit materials were posted online along with the city's 160-plus-page annual comprehensive financial report and a shorter popular annual financial report (PAFR) summarizing highlights of revenue and spending for 2024.