McKinney audit: external auditors issue clean opinion; compensated-absences restatement disclosed
Loading...
Summary
External auditors told the McKinney City Council they issued an unmodified opinion on the city's FY2025 financial statements and federal/state single audits, reported no proposed audit adjustments or suspected fraud, and noted a restatement adding $603,000 to the city's liabilities and $61,000 to component units related to compensated absences.
Weaver audit director Claire Wootton presented the McKinney City Council with the results of the FY2025 audit on Tuesday, saying auditors issued an unmodified (clean) opinion on the city's financial statements and on the federal and state single audits. "We're able to present a clean, unmodified opinion to you all," Wootton said.
The external audit found no proposed audit adjustments, no significant deficiencies and no material weaknesses, Wootton said. She told the council the audit team identified no suspected fraud, had no disagreements with management and reported no independence issues.
Assistant Finance Director Chance Miller welcomed the auditors and thanked city staff for their work during the audit cycle. Wootton described the audit procedures used, including internal-control testing, transaction testing for utility billing and testing of federal and state grant compliance under the single-audit standards. She said the team's risk assessment considered improper revenue recognition and that their testing revealed no issues with utility billing or grant revenue recognition.
Wootton also described the accounting impact of a recently implemented standard for compensated absences: the city's financial statements were restated to record an additional $603,000 in liabilities for the city and $61,000 for component units to reflect that change. She noted other estimates in the financial statements ' including incurred-but-not-reported liabilities for medical claims and pension/OPEB liabilities ' were reviewed and showed no unusual assumptions.
Wootton closed by saying there were no management letters or internal-control findings to report and that the auditors had met with the audit committee in February. The audit item was placed on the regular meeting consent agenda for the council's approval later in the evening.
The council had no questions for the auditors during the work session. The council then moved on to other business and planned to consider the audit on the consent calendar at the regular meeting.
