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Pearland auditors give city a clean opinion on FY2025 financial statements
Summary
External auditors told the City Council Pearland's FY2025 financial statements received an unmodified (clean) opinion; auditors reported no material weaknesses or significant deficiencies and no findings on the city's major federal program. Council accepted the report by resolution 6–0.
Whitley Penn's senior audit manager, Andrew Janette, told the Pearland City Council on March 23 that the firm issued an unmodified, or "clean," opinion on the city's fiscal year 2025 financial statements.
Janette said the audit included internal-control testing across human resources, payroll, procurement, accounts payable, information technology, capital projects and other areas; he reported zero material weaknesses and zero significant deficiencies for FY2025 and said auditors found no instances of noncompliance material to the financial statements. He said the firm's federal single-audit work covered the city's CDBG non-entitlement grants (ALN 14.228) and detected no findings or questioned costs.
"The opinion that the city received on their fiscal year 2025 financial statements is the unmodified or clean opinion," Janette said.
Council members pressed auditors on two recurring topics: whether Pearland met the federal single-audit threshold and the size and repeat nature of proposed audit adjustments. Janette confirmed that a federal single audit is required when federal expenditures exceed $1,000,000 in a fiscal year, and said the firm would provide detail on proposed adjustments in the management representation letter and the finance committee packet. He described some repeat adjustments tied to capital-asset accounting and said management reviewed and posted the recommended entries to the city's general ledger.
Council member Amber Carbone, who said she formerly worked in auditing, praised staff and auditors for closing prior deficiencies. "We've always received clean opinions, but to get those internal-control issues closed out is a big deal," she said.
After the presentation and Q&A, the council voted to accept the city's Annual Comprehensive Financial Report for FY2025 by resolution R2026-51; the motion passed 6–0.
Next steps: auditors and staff will share the management representation letter and the list of proposed adjustments with the council and finance committee for review.
