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Independent auditor gives Collegedale a clean opinion, flags one policy gap on staff food purchases
Summary
An independent auditor told the commission Collegedale received a clean FY2025 audit opinion, highlighted $5.5 million in capital acquisitions and an audited accrual for compensated absences of roughly $600,000 that affected the governmental activities result; the auditor also noted the city lacks a written policy governing employee food purchases and expects a corrective policy within two weeks.
An independent auditor presented Collegedale—ity—ommission with the FY2025 audit and delivered a clean opinion while pointing out a small number of technical accounting issues and one required policy correction.
The auditor told the commission that during the year ended June 30, 2025, the city acquired about $5,500,000 in capital assets and that governmental activities recorded an increase in liabilities in part because the city was required to book accrued sick leave for the first time, a compounding charge of roughly $600,000. "If you took that off of there, we would have made a $125,000 profit," the auditor said, noting that accounting standard changes required the accrual.
The auditor also highlighted that business-type activities (primarily the airport and sewer) had revenue increases and that the airport is profitable; the auditor cited profit numbers for enterprise activities reported in the packet.
The only required audit finding cited in the presentation concerned the absence of a written policy governing employee food purchases. The auditor said the comptroller's review flagged that lack and that staff expects to have a written policy in place within two weeks.
Commissioners praised the finance team for the clean opinion and asked clarifying questions about airport payroll line items and accounting presentation. After discussion, the commission voted to accept the FY2025 audit report by roll call.
Why it matters: A clean audit opinion is important to bondholders, insurers and oversight entities and indicates the financial statements fairly present the city's financial position under applicable accounting standards. The cited finding is procedural and, according to the auditor, will be remedied with a written policy.
Next steps: Staff will prepare the food-purchase policy to address the required finding and respond to any follow-up questions from the comptroller's office. The audit was approved by unanimous roll-call vote.
