Utica receives clean FY2025 audit; auditors flag three federal-compliance findings
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Summary
Auditors from Yo and Yo gave Utica an unmodified (clean) opinion for FY2025, reporting a general fund balance of $7.17 million and a $636,005 increase year over year, but identified three single-audit findings related to year-end close processes, federal procurement documentation, and federal-asset inventory.
Alan Panter, partner at auditors Yo and Yo, told the Utica City Council on Feb. 10 that the city’s FY2025 financial statements received an unmodified — or clean — opinion and were filed on time with the state. "We're giving what's called an unmodified or clean opinion," Panter said, adding the audit was issued Dec. 23, 2025.
Panter highlighted the general fund balance at June 30, 2025, as $7,170,985, an increase of $636,005 from the prior year, and said the fund balance represents about 84% of annual expenditures — well above the usual 20–25% operating minimum many auditors recommend. Revenues were nearly $9.2 million, about $1.2 million higher than the previous year, driven in part by a roughly $1 million federal grant; expenditures rose to about $8.5 million, reflecting capital spending including a fire truck purchase.
While the opinion on the financial statements was clean, Panter described three audit findings disclosed in the single-audit portion of the review. First, the auditors noted year‑end close weaknesses: the city provided 23 journal entries after the trial balance, which Panter said made the audit a "moving target" and is not optimal. Second, federal‑grant requirements were not fully documented in the city's procurement policy and required implementing procedures; Panter said the uniform guidance requires specific procurement provisions and documented procedures for federal recipients. Third, the auditors found that the city did not maintain a required inventory of assets purchased with federal funds and had not performed the required biennial inventory.
Panter said about $1.2 million in federal expenditures triggered the single-audit requirements, most of which were assistance-to-firefighters grant funds used for the fire truck. He recommended the city strengthen close procedures, update procurement documentation to reflect uniform guidance requirements, and establish and maintain a federally funded asset inventory and periodic physical checks.
Council moved to receive and file the audit at the meeting; the motion passed on a unanimous roll-call vote.
