Ryan Child, an auditor with Child Richards CPAs and Advisors, told the Roy City Council on Dec. 3 that the firm issued an unmodified (clean) opinion on the city's financial statements for the year ended June 30, 2024. He highlighted reserve levels, one-time timing differences and the city's receipt and use of federal ARPA funds.

The audit report shows most governmental funds ended the year with stable balances but with some planned draws for capital work. "We'd have expressed an unmodified opinion, a a clean a good opinion on these financial statements," Child said, describing the audit result.

Why it matters: an unmodified audit opinion indicates the auditors found the city's statements prepared in accordance with generally accepted accounting principles. City officials said the report and accompanying management discussion provide a multi-year perspective useful for budget planning.

Key findings and figures cited by the auditor included: general fund unrestricted cash of about $2.7 million and restricted road-related funds of about $6.0 million; total general fund revenues of $26.8 million with taxes constituting roughly $15.7 million; total governmental funds revenues of $27.8 million against expenditures of $28.8 million (a roughly $1.0 million planned draw); and recognition of capital grants and ARPA funds for utility capital projects.

Child described operating results in enterprise funds: water showed a positive operating result but a decline from the prior year; storm sewer and solid waste funds reported positive operating results compared with 2023; and the city had nearly four years remaining on certain revenue bonds issued for utility infrastructure.

The auditors found no reportable deficiencies in internal control or compliance testing tied to the state code areas reviewed. City finance staff and council members praised staff work in producing the report and requested copies of the management discussion and analysis for broader distribution.

Council members asked several questions about the revenue mix and where to find detailed line items; Child pointed them to the report pages that break down sales, property and franchise taxes and program-level spending. Finance staff said they will distribute the full audit packet to council and make the management discussion and analysis widely available.

The presentation closed with council appreciation for the audit team's work and staff handling of the city's finances. The audit did not prompt any formal actions at the meeting.