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Auburn publishes FY24-25 financial report; auditor issues clean opinion but notes restatement and material weakness
Summary
Finance Director Gretchen Hoskins presented the FY24-25 ACFR confirming elimination of the general fund deficit as of June 30, 2025. External auditors issued an unmodified opinion but reported a restatement, 21 corrected misstatements and a material weakness tied largely to grant accounting and implementation of new standards.
The Auburn City Council received the city—s FY24-25 comprehensive annual financial report on Feb. 9. Finance Director Gretchen Hoskins told council the audit confirms the general fund deficit has been eliminated as of June 30, 2025 and described 21 audit adjustments the city corrected during the audit process.
Hoskins said many of the adjustments related to grant accounting and loss of institutional knowledge during a period of staff changes. She described one adjustment of about $600,000 that related to a capital-account classification: grant-funded vans should have been recorded as equipment rather than under a transport-facilities account. "That was the wrong capital account," Hoskins said, describing it as an example of the type of corrections the team addressed.
Representatives from the city—s external auditor, Eide Bailey, commended city staff for timely work and said the firm issued an unmodified (clean) opinion on the financial statements. The auditor also reported a required material-weakness communication because of the restatement and the quantity of audit adjustments. The auditor said additional procedures were performed on sensitive estimates (pension, OPEB) and federal-award testing (single audit) and expected the single audit to be issued by March 31.
Audit senior manager Kyle Bartle (mentioned by the auditor) and the audit team said they found no internal-control failures in transactional cycles but flagged the restatement and adjustments as reasons for heightened disclosure. The auditor emphasized that the corrected misstatements were posted and that the city now has a path to strengthen internal controls and grant accounting procedures.
Council asked no substantive follow-up questions during the presentation; staff and auditors said they would continue to implement policy changes and provide updates on corrective action.
