City audit delivers clean opinion; assets and net position rise

The Newport City Council heard a presentation Jan. 5 from Jessica Luther Haines, senior manager at Aldrich CPAs and Advisors LLP, who said the firm issued an unmodified ("clean") opinion on the City of Newport and Newport Urban Renewal Agency financial statements for the year ended June 30, 2025.

Haines told the council auditors identified no material weaknesses or significant deficiencies in internal controls and noted no instances of noncompliance in tests of minimum state standards administered by the Oregon Secretary of State. "An unmodified opinion is the best you can get," she said.

The audit covered the fiscal period July 1, 2024, through June 30, 2025, and the report was dated Dec. 29, 2025. Haines highlighted several financial changes: capital assets rose by about $3.0 million largely because of work classified as construction in progress on the Big Creek Dam project; current and other assets increased by about $7.4 million; and net position increased roughly $11.1 million (about 7%). Revenues exceeded expenses by $11.69 million in the current year, compared with $10.63 million the prior year.

Haines also explained the city's implementation of Governmental Accounting Standards Board Statement 101, which required recording an estimate of compensated absences and reduced opening equity by approximately $560,000. "That change added an additional liability to the city's financial statements," she said.

Auditors reported three adjusting journal entries during the audit and described the overall engagement as cooperative with city staff. Council members thanked the auditors and city staff; no formal vote accepting the audit was required on the floor beyond the presentation.

Next steps: Council requested that staff remain available to answer any follow-up questions and noted the audit materials are included in the council packet for detailed review.