Auditors brief Maumee City Council finance committee on draft 2024 audit, flag federal‑grant compliance and accounting change

Auditors from the firm Zoopka presented a high‑level overview of Maumee's draft 2024 financial audit during a Maumee City Council finance meeting, noting a change in accounting for a long‑term liability and that the city exceeded the federal single‑audit threshold for grant spending.

The auditors said the audit report has not yet been finalized and will undergo additional review by the state before public release. "This is Kyle, this is a public meeting," an auditor identifying himself as Kyle said during the presentation.

Why this matters: the auditors told council members that because the city spent more than $750,000 in federal grant funds in 2024, the audit includes a review of compliance with grant requirements and a Schedule of Expenditures of Federal Awards. The auditors also called attention to a recent change in the accounting standard affecting how a long‑term liability is recorded in the financial statements, which they described as a significant change for 2024.

Audit scope and process The auditors said management is responsible for preparing the city's financial statements and for internal controls, while the auditors review those statements and provide an opinion. The presentation covered the main components of the audit package the auditors will issue: the basic financial statements, the management's discussion and analysis (MD&A), other supplementary information, and the Schedule of Expenditures of Federal Awards.

Kyle, the managing partner with Zoopka, explained that the firm performs limited procedures on the MD&A and more extensive procedures on other supplementary sections where they offer an opinion. The auditors noted they review compliance areas that could have a material effect on the financial statements; that review is triggered in part because federal grant expenditures exceeded $750,000 in 2024.

Accounting standard and financial‑health material The auditors called out a change in a reporting standard that affects the measurement or presentation of a long‑term liability recorded by the city, describing it as a significant change to how that liability is reflected in the 2024 financials. Council members were directed to consult the MD&A for a high‑level discussion and to the report's statistical section for year‑over‑year figures that can help assess financial trends, such as top taxpayers, population figures, and service statistics.

State review and financial‑health indicators Council members asked whether the audit examines broader financial‑health indicators. The auditors said those indicators are not specifically part of a financial statement audit; the state performs separate desktop reviews of the financial data. "Every city is different," Kyle said when asked how often a presentation like this should be scheduled.

Council questions and next steps Council members asked procedural questions about why the auditors were presenting a high‑level overview before the audit is finalized; an attendee identified as Councilman Barrow observed that the portion of the report presented had not yet been accepted or finalized. The auditors reiterated that the report remains subject to finalization and state review before public release. They told council members and staff to consult the table of contents for where to find the MD&A and statistical sections and offered to answer further questions after the presentation.

No formal actions or votes were recorded during the briefing; the meeting moved on after the auditors closed the overview and invited follow‑up questions.