Independent auditor issues unmodified opinion on Nampa’s 2024 financial statements, flags procurement documentation

An independent audit firm told the Nampa City Council on July 21 that the city’s fiscal 2024 financial statements received an unmodified opinion and that federal programs tested in single audits also received unmodified opinions on compliance.

Kristen Diggs, representing audit firm Eide Bailly, summarized the firm’s work and findings. The auditors used a risk‑based approach, performed confirmations and tests of significant balances and issued an unmodified opinion on the city’s financial statements and internal control over financial reporting. The single-audit testing covered three federal programs: the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF), the Bureau of Reclamation water-recycling program and the Clean Water State Revolving Fund capitalization grants.

Why it matters: An unmodified (clean) opinion means auditors found the city’s financial statements fairly presented in conformity with generally accepted accounting principles. That supports public confidence and the city’s standing with lenders, grantors and other partners.

Findings and management responses: Auditors did note a material weakness limited to procurement documentation: the audit team could not find evidence that the city had documented suspension-and-debarment checks for certain contractors; when auditors could not test that the checks had occurred prior to contract awards, they flagged internal-control weakness and required a corrective action plan. In discussions with management, Diggs reported that the city has implemented a corrective-action plan and policy changes intended to prevent the finding in future audits.

The auditors also noted significant estimates in the statements, including the PERSI (Public Employee Retirement System of Idaho) actuarial liability, allowance for uncollectible receivables and contributed infrastructure valuation. There were no material audit adjustments for the current year; a few prior‑period adjustments were cleaned up in the current-year statements (depreciation, opioid settlement receivable/deferred inflow, and investment valuation under GAAP).

What was said: “We issued an unmodified opinion on the financial statements,” Kristen Diggs told council. She emphasized that, while the single-audit compliance opinions were unmodified, auditors were required to report the missing procurement documentation as a material weakness because there was insufficient evidence in the records to demonstrate suspension-and-debarment checks.

Next steps: Staff said corrective action is under way and that the city will implement new procurement documentation procedures. Council members requested copies of the full audit report; the auditor said she would provide copies to council members after the presentation.

Ending: Overall the audit presented a clean opinion on the books while highlighting one internal-control documentation lapse that the city says it is addressing through policy and procedure changes.