City auditor reports clean FY2025 opinion; management letter recommends pension timing and IT awareness

The City of Urbana received an unmodified (clean) audit opinion for fiscal year 2025, the city’s auditor Jamie Wilkie told the council on Jan. 12. Wilkie said auditors found no reportable internal-control deficiencies and recommended continued attention to three areas: pension contribution timing, monitoring a small number of funds that were over budget due to accrual timing, and ongoing IT/cybersecurity awareness.

Wilkie noted the audit includes the statistical schedules and 10-year trend information required for the Government Finance Officers Association certificate of achievement and that the city added roughly $20.6 million in capital assets during the year—construction-in-progress and equipment acquisitions tied to ongoing projects and bond-funded work. The audit also reflected about $9 million of long-term debt from the general-obligation bond issuance; those liabilities were added in the normal course of capital financing.

In the management letter auditors flagged pension funding timing and recommended the city compare contributions to actuary guidance; auditors emphasized that the IT/cybersecurity note is a best-practice recommendation rather than a finding, and urged ongoing awareness because local governments are frequent targets of scams and fraud.

What’s next: city staff and auditors will work together to review pension contribution timing, monitor funds for accrual-related variances, and consider IT awareness steps; the audit packet and award materials are available in the council packet for further review.