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Auditor: Springville receives clean opinion for FY2025; $7.5M in grant awards triggered single-audit review
Summary
City auditor Joe Chapman told the council the draft FY2024–25 audit will carry a clean opinion, noted a $627,000 improvement in fund balance from the prior year and said ADEM grants of about $7.5 million triggered required single-audit reporting; council will vote on the audit in two weeks.
Joe Chapman, the auditor presenting the city’s draft FY2024–25 financial audit, told the Springville City Council the auditors expect to issue a clean opinion for the year ended Sept. 30, 2025.
“That we’re issuing a clean opinion,” Chapman said, summarizing the auditors’ judgment that the city’s financial statements are free from material misstatement. He told the council the city was subject to a single audit this year because it received and spent grant funds above the federal threshold that triggers additional compliance testing.
Chapman walked council members through the report layout and key figures. On the modified-accrual (fund) basis, the city showed a decrease in fund balance of about $627,000 — an improvement from a roughly $1.3 million loss the prior year, Chapman said. Capital outlays totaled about $1.3 million for projects in progress. In the proprietary statements for water and sewer, he reported net income of about $3 million for 2025 and identified revenue increases driven by water, sewer and garbage fees.
Chapman said the city received roughly $7.5 million in ADEM-related grant awards, of which about $2.5 million had been drawn down and spent as of Sept. 30, 2025, leaving about $5 million remaining on those awards. Those grant draws were the reason the single-audit procedures were required, he added.
Council members asked for clarifications about where building and zoning and the library appear in the fund statements; Chapman said those functions are recorded in general government on the fund financials and offered to provide additional detail over the next two weeks.
The council will consider a motion to accept the final audit at its meeting on the 18th, after members have had time to review the draft, Chapman said. He also noted required follow-up filings related to the single audit, including submission to the federal clearinghouse that tracks single-audit results.
The audit presentation closed with the auditor thanking city staff for assistance in preparing the report. The council did not take formal action on the audit at this meeting; members were asked to review the draft before the upcoming vote.
