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Oro Valley receives clean audit for fiscal year ending June 30, 2025
Summary
External auditors Baker Tilly gave Oro Valley a clean (unqualified) opinion on the town's FY2025 financial statements and federal single-audit, reporting no material weaknesses, no fraud identified and expenditures well under the voter-approved cap.
Bridal Hemmerly, the lead audit partner with Baker Tilly, told the Oro Valley Town Council on Jan. 28 that the firm issued a clean, unqualified opinion on the town's annual comprehensive financial report for the fiscal year ending June 30, 2025. "You did receive a clean opinion on what we call an unqualified opinion on that report," Hemmerly said.
Hemmerly said auditors found no reportable findings related to internal controls or compliance and no instances of identified fraud. He also said the town received a clean federal single audit, which included testing of COVID-19 State and Local Fiscal Recovery Funds. "We did not identify any fraud at the Town of Oro Valley this year," he said.
Town staff and auditors pointed council members to detailed schedules in the report. Hemmerly noted a reporting change this year related to compensated absences required under governmental accounting standards; the change increases the liability reported for vacation and sick leave but was not material. He also highlighted the town's expenditure limitation filing: the voter-approved cap was $150,800,000 and the town's expenditures subject to that limit were $116,800,000, leaving approximately $34 million of capacity.
Council asked for page references and specifics, and auditors pointed to the financial statements and the management's discussion and analysis (MD&A). On fund balance detail, staff and auditors provided the classifications Hemmerly spoke to: nonspendable (about $465,000), committed (about $14,600,000) and unassigned (about $5,600,000).
Council members pressed on cost drivers and actions the town can take; auditors and staff identified utility and insurance costs as rising areas and said departments have generally stayed under budget during the prior year. The presentation concluded with council thanking staff for stewardship and accepting the auditor's findings.
The council did not take formal action on the audit presentation itself; auditors said they would provide any follow-up answers requested by council on data retention and other details.
