Multnomah County receives clean FY2025 financial audit; pension liability rises about $90 million
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Summary
The Multnomah County Board acknowledged the county's FY2025 comprehensive financial report and single audit, which returned an unmodified (clean) opinion. Auditors found no material compliance findings; staff highlighted a roughly $90 million increase in pension obligations and large capital and program spending.
The Multnomah County Board on Friday acknowledged the county's annual comprehensive financial report for the fiscal year ended June 30, 2025, and the accompanying external audit, which returned an unmodified opinion.
Chief Financial Officer Eric Arellano told commissioners the county received a clean opinion on its financial statements and no reportable compliance findings in the federal single audit. Arellano highlighted that the county had fully expended most ARPA funds in 2025 and reported federal expenditures of roughly $93 million for the year. He also said the county recorded about a $90 million increase in its pension obligation, raising the liability to more than $700 million.
Ashley Austin, a principal with Baker Tilly (the county's external auditor), summarized the audit approach and results. Austin said auditors used a risk‑based approach, tested internal controls and federal grant compliance (including the WIC and LIHEAP programs), and identified no material audit adjustments or reportable compliance findings. "The results are an unmodified opinion on your financial statements, meaning your financial statements are presented fairly in accordance with U.S. generally accepted accounting principles," Austin said.
Audit committee chair Shawnee Harris Bagwell told the board the audit process was thorough and well‑executed. "This was a strong audit that reflects well on the county staff, the external auditors and everyone involved in making sure the work could withstand scrutiny," she said.
Finance staff noted other highlights from the statement of activities and footnotes: pension assumptions and investment returns were a key driver of the pension obligation increase; capital spending for the library project was about $115 million in fiscal 2025; Preschool for All spending rose nearly 39% year‑over‑year with spending near $100 million; and supportive housing spending increased year‑over‑year to just over $200 million.
The board adopted a resolution acknowledging receipt of the financial report and audit and directed county management to resolve any applicable audit recommendations. Commissioners thanked audit committee volunteers and staff for the work that produced the clean opinion.
The resolution was adopted by roll call vote.
