Auditor issues unmodified opinion on city financials; says coronavirus funds complied in material respects

The city's external auditor, Kayla Williams of BT & Company, presented the 2024 audited financial statements and an additional results-of-examination report addressing the city's use of federal coronavirus funds.

Williams told the council the firm issued an unmodified opinion on the city's financial statements presented on the regulatory basis of accounting — the highest level of assurance for that basis — and that the separate compliance engagement found the city complied in all material respects with the applicable U.S. Department of Treasury requirements for coronavirus funds.

Williams described routine audit procedures including tests of supporting evidence, reviews of accounting estimates (noting the net pension liability is an actuarial estimate disclosed in a footnote), and a small number of audit adjustments that management agreed to include in the city's records. She also explained the city previously adopted a resolution to waive US GAAP reporting, which results in an adverse opinion if the GAAP presentation is required; the city instead presents on a regulatory basis where an unmodified opinion was issued.

Council thanked staff for the work that supported the audit; no formal motion was required to accept the presentation, but councilmembers asked that staff proceed with implementation of any agreed adjustments and continue to provide the documentation that supported the favorable audit outcomes.