City auditors from CliftonLarsonAllen (CLA) presented the City of Sedona’s annual comprehensive financial report for the fiscal year ended June 30, 2024, and issued an unmodified (clean) audit opinion.

Jean Dietrich, principal with CLA, told the council the auditors performed a risk‑based audit and found no material weaknesses or significant deficiencies in internal control, no material audit adjustments (one small adjustment related to amortization of bond premium was noted), and no evidence of fraud or unusual transactions identified during testing. CLA also reported no difficulties or disagreements with management during the audit process.

The audit included special-purpose examination reporting required by state law: a compliance examination of the state highway users revenue fund (AZ Rev Stat Title 28 compliance) yielded no findings; the city also remained within the voter‑approved alternative expenditure limitation (home-rule expenditure limit) for the reporting period.

City staff noted the audit was completed on schedule despite a recent transition in finance leadership, and both the auditors and staff praised the finance team for work that enabled timely reporting. Auditors said a change in presentation related to major funds was implemented to provide more consistent year‑to‑year financial comparisons (GASB guidance and related presentation changes) and that management estimates used in preparing the financial statements did not suggest management bias.

Council members thanked staff and auditors; questions focused on the amortization adjustment and on clarification that the home‑rule alternative expenditure limitation number is the council‑established cap associated with home‑rule authority (the number cited in the report is the most recent council‑set limit). The auditors said the city remains well within its expenditure limitation and noted the city did not meet federal single‑audit thresholds for fiscal 2024 (no single audit required).

The City will publish the audited annual comprehensive financial report and follow routine procedures for posting and distributing the report to stakeholders.