Emily Sheldon, a principal with audit firm BT and Co., told Belton City Council the firm performed the FY24 financial‑statement audit under applicable accounting standards and concluded the statements were "presented fairly in all material respects" except for a qualified opinion on the water fund. Sheldon said auditors "did not observe the counting of physical inventories at the end of fiscal year 2024" and were "unable to satisfy ourselves by performing other auditing procedures concerning the inventory held at year end," leading to a qualification limited to the water fund. Sheldon said the firm issued unmodified opinions for other opinion units.

Sheldon said auditors recorded audit adjusting journal entries and identified three uncorrected misstatements, which the firm determined were immaterial to the financial statements and will be monitored. She outlined significant estimates the city makes — fair value of investments, allowance for doubtful accounts, pension and other post‑employment benefit items, and lease‑related items — and said those estimates "appeared reasonable" based on audit procedures.

The audit included a management letter that described identified internal‑control deficiencies and management's written responses. Sheldon said the city resolved a prior material weakness related to controls over financial reporting and segregation of duties for accounts payable and that most remaining findings were carried forward from the FY23 audit. The report also noted the city adopted GASB Statement No. 96 (subscription‑based IT arrangements) and GASB guidance on compensated absences during the year.

Council members asked whether the water‑fund qualification would recur. Sheldon said the city was able to observe the FY25 inventory count and she did not expect the qualification to continue into FY25. She pointed council members to the management letter for the auditor's recommendations; the letter lists each identified deficiency with suggested corrective actions and management's response and timeline.

The council took no formal action beyond asking questions and receiving the audit presentation.