Auditor: Apache Junction’s FY2025 financial statements and single audit return no findings

Ben Herr, representing audit firm Western Chapman, presented the City of Apache Junction’s financial statements and the required single audit for the fiscal year ended June 30, 2025.

Herr said the financial statements audit yielded what he described as a clean result for that type of engagement and that the auditors did not identify deficiencies in internal controls over financial reporting. He also said the single audit — which tests major federal programs when a government receives more than $750,000 in federal assistance — included testing of COVID-related grant activity and produced no compliance findings.

On the city’s financial position Herr summarized the numbers reported in the audited statements: capital assets of about $116,000,000, cash and investments about $111,000,000, receivables reported around $21,000,000 and a total net position of roughly $178,000,000 at year end. He said total revenue for FY2025 was reported at about $106,000,000 with sales taxes and charges for services among the largest components.

Council members asked follow-up questions about the receivables and the classification of unearned revenue. Herr explained that the $21,000,000 figure reflects government-wide receivables that can include long-term special-assessment receivables, lease receivables and other items (he mentioned opioid-related receivables as an example) and that expected collections can occur over long periods. On the $2,700,000 labeled as unearned revenue, he said that amount generally reflects grant advances or other funds received in advance of when eligibility requirements are met and that such amounts become revenue as the city meets the applicable requirements.

The council acknowledged finance staff for the audit results and staff noted the annual comprehensive financial report is available on the city’s website for public review.