Audit review committee recommends City Council accept Boulder City's financial report after auditors issue clean opinion

The Boulder City Audit Review Committee voted to recommend the City Council accept the Annual Comprehensive Financial Report (ACFR) for the year ending 06/30/2025 after outside auditors issued an unmodified, or "clean," opinion and reported no current-year findings.

Finance Director Cynthia Snead summarized the ACFR and turned the presentation over to audit representative Crimson Singleton, who told the committee the auditors had issued a clean opinion on the financial statements and found no issues in the current year that required reporting. "There was an unmodified or, in other words, a clean opinion," Crimson said during a short slide presentation.

The audit presentation highlighted fund-level changes: governmental funds showed a change in fund balance of $18,100,000 compared with $10,800,000 the prior year, with total revenues of $76,100,000 (up $3,700,000) and intergovernmental revenue up about $2,400,000, driven in part by Regional Transportation Commission receipts. Crimson said lease receivables were up about $2,200,000 and expenditures were down roughly $4,100,000. The general fund's unassigned balance rose about $3,000,000 to $29,000,000, which the auditor characterized as roughly 8.6 months of operating reserves based on fiscal year 2025 expenditures.

Crimson told the committee the Capital Improvements Fund declined by about $12,000,000 to just under $11,000,000; she attributed the large decrease primarily to a $17,000,000 transfer to the swimming pool fund. When a council member asked whether the swimming pool fund is presented as a nonmajor governmental fund, Crimson confirmed that it is and pointed the committee to the related schedules in the back of the report.

Chairwoman pressed for clarity on the $17,000,000 amount because voters had previously approved $9,000,000 for pool-related measures. Finance Director Cynthia Snead explained that $1,000,000 of the movement represented the city's annual CIP funding; the remainder reflected transfers authorized by two voter-approved ballot measures (one in 2019 and one in the last year). "As soon as the election results were in, we made the accounting entry to move the dollars over," Snead said.

The auditors also discussed internal controls and the required communication to those charged with governance. Crimson described internal controls as the checks and balances in cash disbursements and other processes; she said the firm issues a communication letter to the governing body and that no formal findings were reported this year, noting one prior-year item had been cleared before the auditors' work.

After questions, a committee member moved to recommend the ACFR be forwarded to the City Council for acceptance; the motion was seconded and the committee voted in favor. The chair called the vote "unanimous." The committee also approved the March meeting minutes earlier in the session.

The committee thanked staff and the auditors for their work; the meeting concluded after a final public comment opportunity produced no callers.