Deputy Finance Director Melanie Keaton and Amanda Eaves, partner at Forvis Mazars, briefed the Audit Committee on the external independent audit for fiscal year 2025 and on required communications between external auditors and the committee.

Keaton summarized city responsibilities for preparing the Annual Comprehensive Financial Report and coordinating component-unit financials, and noted the current contract with Forvis Mazars is in its fourth year (first year of a two-year extension). She also noted the external auditor performs the single audit for federal and state grant programs.

Amanda Eaves summarized the audit engagement and timeline. Forvis Mazars began planning work in July and performed interim procedures in August; deliverables are scheduled for February 2026 with presentations to the committee in March. The firm identified significant-risk areas typical for an entity of the city's size: revenue recognition, management override of controls, and compliance for major federal and state programs. The planned single-audit major programs were noted based on interim financials and may be refined as actual year-end numbers are finalized.

Eaves described the audit's fraud-risk procedures (team brainstorming, management interviews, review of estimates and unusual transactions, and inclusion of unpredictable procedures) and asked the committee to raise any areas of concern through the committee chair. She also outlined materiality concepts used to scope testing and said the auditors will obtain component-unit audit reports from other firms and coordinate as needed.

Committee members asked about whether the audit team uses red-team or external third-party specialists and how the team simulates fraud scenarios; Eaves said the firm uses varied team composition and includes new personnel but does not normally engage an external third-party red team for that process. The committee received the required communications; no formal action was required at the meeting.