External auditors report unmodified opinion on Independence's 2025 financials; single-audit notes one compliance issue

Chester Moyer, an audit partner with the firm Ruben Brown, told the Independence City Council at a March 23 study session that his firm issued an unmodified (clean) opinion on the city's financial statements for the year ending June 30, 2025. He said the audit was performed under generally accepted auditing standards and under government auditing standards required by the federal Office of Management and Budget.

Moyer said his team spent "a little over 900 hours" auditing city records and financial systems and that the audit included a compliance review of federal funds. "This year, the city spent about $14,800,000 of federal expenditures," he said, and the firm tested three major programs, with the largest showing an assistance listing number of 21.027 and approximately $7,300,000 in expenditures.

The auditors reported one instance of noncompliance in the single-audit deliverable; Moyer said that finding will be described in the single-audit report and reviewed with management. He also described the audit's required communications to the council about any corrected or uncorrected misstatements and internal-control deficiencies identified under government auditing standards.

Moyer discussed the city's implementation of a new GASB accounting statement (noting the change affected historical presentation) and reviewed areas where management employs significant estimates, including other post-employment benefit calculations and compensated-absence estimates. He said auditors review statistical and trend tables in the annual comprehensive financial report but do not audit those back sections.

Councilmembers asked clarifying questions about the audit's timing and submission of the federal single-audit (Moyer confirmed the single-audit was submitted on schedule in March) and about coordination with other auditors of city component units. Moyer said his firm coordinated with the other auditor for the related component (Abel Dammer Arena in the financial statements) to align timing and reporting.

No formal action was requested or taken on the audit presentation during the study session. The council was offered the management representation letter to close the audit process and staff was asked to follow up on the single-audit finding and the recommended status updates tracked from prior years.

The council did not vote on the audit at the session; the presentation was for review and comment.