Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Council accepts FY2025 audited financial report; auditors issue clean opinion
Summary
The council accepted the Fiscal Year 2025 Annual Comprehensive Financial Report after auditors from Pattillo, Brown & Hill issued an unmodified opinion and noted restatements tied to a new GASB compensated-absences standard; staff will provide a reconciliation explaining a better-than-budget ending fund balance.
The City Council voted to accept the fiscal year 2025 Annual Comprehensive Financial Report (ACFR) after Pattillo, Brown & Hill (PBH) presented an unmodified (clean) audit opinion. The council approved filing the report with the city clerk and posting it on the city's website by voice vote, 6-0.
Michelle Majeski, engagement supervisor for PBH, told council the audit provided a clean opinion under generally accepted auditing standards and government auditing standards. The auditors included an emphasis-of-matter paragraph noting implementation of a new GASB standard on compensated absences (accumulated leave), which required restating the beginning net position. Auditors also identified additional land acquisitions and donations that the city had not previously tracked and adjusted the financial statements accordingly.
Ms. Majeski summarized key figures: the general fund closed with nearly $6.5 million in unassigned fund balance (about 33% of general fund operating expenditures, or roughly four months of reserves) and about $1.5 million in assigned fund balance planned for next-year spending. The auditors reported the city came in about $1.9 million under budget for expenditures and that the city did not meet the threshold for a federal single audit this year. The auditor said there were no internal-control findings requiring reporting.
Council members asked about the large favorable variance in ending fund balance. City staff said they will prepare and present a reconciliation showing differences between budgeted and actual results; staff cited curtailed spending, higher-than-expected interest earnings (about $400,000 vs. a $275,000 budget), and stronger permit/EMS collections as contributors.
An unidentified council member moved to accept the report; another seconded and the motion carried 6-0. Staff noted the city will submit the ACFR to the Government Finance Officers Association (GFOA) for a certificate of excellence.
