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City auditors issue clean opinion; Hampton posts $18.4M positive variance for FY2025
Summary
External auditors issued an unmodified opinion on the City of Hampton—s FY2025 financial statements; staff reported $465M in revenues versus $441.4M budget and an $18.4M net positive difference, driven in part by one‑time proceeds from the regional jail sale and HRT true‑up payments.
External auditors and city finance staff presented the City of Hampton—s audited Annual Comprehensive Financial Report for the year ended June 30, 2025.
Laura Harden, the engagement director for Cherry Bekaert LLC, presented the audit results and said the firm issued "an unmodified opinion on the financial statements," the highest level of assurance, and did not identify any material weaknesses in internal control or instances of noncompliance under the standards they applied. Auditors noted one misstatement that management corrected during audit procedures, an additional accrual of $222,000.
City Finance Chief Carl Dodgery summarized the fiscal results: actual revenues of $465.0 million exceeded the budgeted $441.4 million by about $23.6 million, while expenditures totaled $446.6 million against a $452.4 million budget, leaving an $18.4 million positive difference that increased fund balance. Dodgery said roughly $9 million of the revenue surplus were one‑time items, including about $8.1 million from the city's share of the Hampton Roads Regional Jail sale and approximately $0.9 million in HRT "true‑up" payments for prior years.
Dodgery also outlined major transfers and commitments: $95 million in local funding to schools under the city—s formula (61.83% share), about $45.7 million transferred to the capital projects fund, $30.9 million to the debt service fund, and $9.6 million of dedicated hotel/millage transfers to convention center operations. He reported the unassigned fund balance ended FY2025 at about $115.1 million (17.1% of revenues), exceeding the city policy target of 10%.
Council members asked questions about revenue trends in consumer taxes, the convention center and AquaPlex financing, and the auditors— progress on single audit reporting; auditors said the Office of Management and Budget—s delayed compliance supplement postponed some single audit procedures but a separate compliance reporting package was being completed.
The presentation closed with staff noting next steps for finalizing single audit reporting and continuing oversight of fund commitments.
