Auditor gives Kuna City and Urban Renewal Agency clean opinion; notes DEQ remediation liability

Bailey & Company presented the 2024 audited financial statements for Kuna City and the Kuna Urban Renewal Agency and issued unmodified (clean) opinions on the city's financial statements and the agency's component-unit statements.

The auditor told the council that the firm found no reportable findings under Government Auditing Standards. The presentation highlighted two accounting estimates that required judgment: accumulated compensated absences for employees and a pollution remediation liability related to proposed fines by the Idaho Department of Environmental Quality (DEQ) for wastewater plant violations. The auditor said the city records its estimate of the liability and, where a range exists, discloses the possible maximum; the presentation cited a high-end figure of $1,137,500 for the remediation obligation.

The audit summary also showed year-over-year increases in net position. The governmental funds reflected a net increase of about $6,000,000, and the city's business-type (utility) activities rose about $5,700,000 for the year; the pollution remediation item is disclosed in the utility fund notes. The audit included the city's budgetary comparison schedules and other supplementary information; the auditors noted they do not provide opinions on required supplementary management discussion and analysis or budget-to-actual schedules.

Bailey & Company also reviewed the Kuna Urban Renewal Agency's statements, noting the agency's two funds (West District and East District) and a net increase of approximately $496,000 in that component unit. The auditor said there were no findings in the internal-control or compliance report prepared under Government Auditing Standards.

No motions or votes were required for the audit presentation; council members asked no substantive follow-up questions during the presentation.