Beaumont auditors give city clean opinion; finance committee forwards FY2025 report to council

The Beaumont Finance and Audit Committee received a draft Annual Comprehensive Financial Report for the fiscal year ended June 30, 2025, and voted to receive and file the report and forward it to the full City Council.

Veronica Hernandez, the engagement manager for the audit team, told the committee the auditors issued an unmodified opinion — the highest level of audit assurance — saying the financial statements were "fairly presented in no monetary respects." She added the firm found "no disagreements with management, no material errors or irregularities, and no material weaknesses or significant internal control deficiencies to report."

City staff provided the financial highlights. Lisa Leach presented the government‑wide and fund results, saying the city’s total net position increased by $37,900,000 from the prior year. She reported total assets of $836,000,000 and total liabilities of $212,000,000, for a net position of $624,000,000. Leach attributed the increase to completed capital work including City Hall and Memorial Plaza improvements, the addition of a new fire station, road rehabilitation and the purchase of new buses.

On the fund level, Leach said General Fund revenues for FY2025 were $72,800,000 — an increase of $8,700,000 from the prior year — and noted a one‑time audit recovery of misallocated county allocations contributed to the rise. General Fund expenditures were $57,000,000, an increase of $6,000,000 driven by one‑time audit adjustments, higher insurance and settlement costs, and public‑safety spending tied to the new fire station.

Leach outlined fund balance and reserve policy. The report shows an ending total fund balance of $53,600,000 with $40,500,000 categorized as unassigned. Under the city’s policy, a 16% working cash flow reserve (calculated at $12,800,000), a $5,000,000 budget stabilization reserve and a $1,000,000 emergency reserve produce total restricted reserves of $18,800,000 and leave an available fund balance of about $21,700,000.

Council members questioned whether the available balance excluded recently reallocated capital improvement project funds for the Pennsylvania grade separation; staff confirmed the $21.7 million was still unassigned and described the city’s pooled cash and investment liquidity, saying funds could be accessed as needed.

After the presentation and questions, the committee voted to "receive and file" the FY2025 Annual Comprehensive Financial Report and recommend it to the City Council. The motion was moved by a council member and seconded by Christian Fernandez; roll call recorded members voting in favor and the motion passed.

The committee also noted an upcoming RFP for investment advisers and heard appreciation for staff work producing the audit materials. The meeting adjourned at 06:28.