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Hagerstown receives clean audit for FY25; auditors report no material weaknesses
Summary
SV and Company reported an unmodified (clean) opinion on Hagerstown's FY25 financial statements, citing no material weaknesses, no audit adjustments, and no awareness of fraud; the report shows asset and revenue growth and notes state and federal reporting deadlines.
Auditors told the Hagerstown mayor and council on Dec. 9 that the city's fiscal 2025 financial statements received an unmodified, or "clean," opinion.
"We issued an unmodified opinion on the financial statements," William (Bill) Seymour, client advisory partner with SV and Company, said during the work session. He told council members their financial statements appeared "reasonably free of material misstatement" and that auditors found no accounting adjustments, no material weaknesses in internal control, and no discovery or awareness of fraud through the procedures performed.
The audit covered statements for the year ending June 30, 2025, and included work required under the Uniform Guidance single-audit process for federal grant compliance. Seymour said the city's total assets rose from about $439,000,000 in 2024 to just over $466,000,000 in 2025, liabilities increased from roughly $173,000,000 to $177,000,000, and net position improved by roughly $30,000,000 over the year. He added total revenues grew from about $142,000,000 to $161,000,000 and expenses increased from about $117,000,000 to roughly $131,000,000, figures the auditors tested without noting exceptions.
Michelle (city finance staff) and other finance team members were credited for cooperation during the audit. Seymour described the firm's scope: entity-wide and fund-level financial statement testing, control environment reviews using the COSO framework, substantive procedures and analytical review, and federal reporting (data collection form and Uniform Financial Report) to meet state and federal deadlines.
The presentation reiterated filing deadlines for certain reports: the Annual Comprehensive Financial Report (ACFAR) and the Uniform Financial Report are due Oct. 31 under state rules, and the single-audit reporting for federal grant compliance must be completed by March. Seymour said the firm will provide the management representation letter and respondent materials on request.
Council members applauded the finance department for the clean result. The audit presentation closed with auditors offering to answer follow-up questions and management confirming ongoing work on the Uniform Guidance single audit for federal funds.
The council did not take any formal vote during the presentation; staff provided the report for review and said the documents are available on the city website.
