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Sulphur receives clean audit for FY2025; city posts $10.2 million net gain
Summary
Independent auditors issued an unmodified opinion on the City of Sulphur27s FY2025 financial statements, reporting $197.2 million in assets, ~$60 million in cash/investments, and a $10.2 million positive change in net position. Auditors reported no material control deficiencies for general government or federal grant programs.
Steve Derwin of Derwin and Associates told the Sulphur City Council the firm issued an unmodified (clean) opinion on the city27s financial statements for the fiscal year ending June 30, 2025. He said the city ended the year with total assets of about $197,200,000 and about $60,000,000 in cash and investments, an increase of roughly $9,000,000 from 2024.
Derwin said the city27s capital assets (streets, water and sewer plant, equipment and buildings) were about $131,000,000, a decrease of roughly $2,000,000 from the prior year because of depreciation. He reported liabilities of about $67,000,000, including pension liabilities (about $24,000,000) and accrued health benefit liabilities (about $27,800,000). Bonds payable were about $8,000,000 after principal payments during the year.
On the statement of activities, Derwin said the city recorded approximately $52,600,000 in revenues for the year, a decline of about $10,000,000 from 2024 driven mainly by reduced state and federal funding. He said the net change in position for FY2025 was about a $10,200,000 positive increase.
Derwin also summarized required reports on internal controls and compliance, including the single-audit–style federal compliance report tied to roughly $5,000,000 of federal grants. He said both the controls-and-compliance report and the federal-reporting work had no modifications and disclosed no significant or material deficiencies.
City officials publicly thanked the accounting department and the city controller for their work supporting the audit. Resident Cindy Robertson asked whether auditors test the effectiveness of internal controls across the whole city and whether purchases are verified directly with vendors; administration and staff said auditors sample records and legislative-auditor requirements include control testing, but sampling—not vendor-by-vendor verification—is the typical audit procedure.
The council accepted the audit report and the accompanying resolution on the agenda.
