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Auditor gives Shelbyville a clean financial opinion, flags police cashier controls
Summary
The city's independent auditor issued an unmodified (clean) opinion on the FY ending 06/30/2025 financial statements, reported general fund cash of about $18.6 million (down ~$3.5M) and noted a finding at the police department regarding cashier controls and documentation of dismissals.
The independent auditor presented the City of Shelbyville's comprehensive financial report for the fiscal year ended June 30, 2025, and issued an unmodified (clean) opinion on the financial statements. Auditor Patrick told council the firm prepared the financial statements and emphasized management retains responsibility for figures.
Key figures cited: general fund cash of approximately $18,600,000 (about $3.5 million down from the prior year), other governmental funds cash of roughly $8,000,000 (about $3.5 million up), and total cash of about $26,700,000, which the auditor described as "pretty much a wash" year over year. The auditor reported the general fund had a net change in fund balance of a loss of $3,000,004.72 while other funds were positive about $3,200,000, leaving the government near breakeven on the year.
The auditor explained a $6,000,000 transfer out of the general fund to other funds accounted for much of the general fund decrease and noted that one large capital project (flood pump) had not yet expended budgeted funds as of the audit date. The auditor also highlighted the pension (fiduciary) fund holding about $17,000,004.49 with a $1,000,000 investment gain during the year and about $925,000 in benefits paid.
The audit included a required report on compliance and internal controls. The auditor reported one finding at the police department: cashiers who collect traffic fines also have responsibilities that include recording dismissals, and the firm recommended improved supervisory controls, better documentation for dismissals and a move from handwritten receipts to a computerized receipt system. Management concurred in writing and the auditor said the firm will follow up in the next audit cycle.
Council thanked the auditor and asked a few clarifying questions; the full 104‑page report was provided to council for review and will be incorporated into the next formal action if council elects to accept the report at a future meeting.
