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Urbana receives clean FY2025 audit; auditors flag pension timing, budget timing and IT awareness
Summary
Auditors reported an unmodified (clean) opinion for FY2025, noted roughly $9 million in new long-term debt and about $20.6 million in added capital assets, and offered three management-letter recommendations—pension funding timing, budget/timing variances, and IT awareness.
Urbana — Auditors presenting the city’s FY2025 comprehensive financial report told the City Council on Jan. 12 that they issued an "unmodified" or clean opinion on the city’s financial statements and recommended several management improvements.
Jamie (auditor partner) summarized the financial report and said the city earned what auditors call an unmodified or clean opinion for the fiscal year ended June 30, 2025. The auditors also highlighted the city’s likely receipt of the Government Finance Officers Association certificate of achievement for excellence in financial reporting and pointed council members to the management’s discussion and analysis (MD&A) for a concise summary of the audit.
Key fiscal figures presented included about $9 million added to long-term debt (principal recognition tied to general obligation bonds issued during the year) and roughly $20.6 million added to capital assets, recorded as construction in progress and equipment purchases. The auditors said the net position decreased only slightly for the year when accrual-based accounting and long-term items are included.
Auditors issued a management letter that contained three recommendations: (1) review pension-contribution timing and reconcile with actuary guidance; (2) examine funds that showed over-budget results (a timing and basis-of-accounting issue); and (3) increase IT and cybersecurity awareness and monitoring. The firm noted these items as recommendations rather than reportable internal-control issues and reported no exceptions in the SAS 114 communication to governance.
In council questions, members asked whether the audit firm conducts proactive IT security testing; the auditors said that while their financial-statement audit looks at the IT environment, specialized IT stress testing or penetration testing is outside the typical scope and would require a different engagement.
Auditors identified where the council can find detailed capital-asset schedules and 10-year trend tables in the back of the audit document and offered to provide hard copies to council members and staff on request.
