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Fernley council accepts FY2025 financial report after auditors issue clean opinion
Summary
The Fernley City Council unanimously accepted the city—s comprehensive financial report for the year ending June 30, 2025, after auditors from HintonBerdick reported an unmodified (clean) opinion and noted no material weaknesses or state compliance findings.
The Fernley City Council voted unanimously to accept the city—s annual comprehensive financial report for the year ended June 30, 2025, after a presentation from external auditors.
"Based on our test work, those financial statements are materially correct," McKay Hall of HintonBerdick CPAs & Advisors told the council, summarizing an unmodified opinion and saying the audit identified no material weaknesses, significant deficiencies or state compliance findings.
City Treasurer Robert Carson introduced the audit team and thanked finance staff, singling out accounting manager Jenny Carrick for leading the work papers and coordinating the audit process.
The auditor reported the city—s net position stood at $286.9 million at fiscal year end, with a $35.8 million increase during the year. McKay Hall said roughly $16.4 million of that growth came from business-type activities (water and wastewater) and $19.5 million from governmental activities. Total revenues were reported at about $64 million for the year.
Council discussion focused on the audit—s highlights rather than on exceptions. Hall noted a marked increase in capital outlay that accounted for most of an apparent 87% year-over-year rise in governmental expenditures, and he said that removing capital spending from the calculation actually showed a modest decline in operating expenditures.
The auditors also reviewed five-year trends, observing rising property tax revenues and generally stable liabilities. Hall cautioned that sizable fund balances in the utility funds are largely invested in long-lived capital assets and are not readily convertible to cash for short-term needs.
Councilman Laauo moved to accept the report; the motion was seconded and the mayor announced the motion carried (meeting record: "Motion carries 40"). The council did not direct further action; staff said routine follow-ups and annual reporting will continue.
The audit presentation and acceptance conclude the city—s formal review of FY2025 financial statements; any future rezoning or capital projects referenced in the audit will be handled through separate entitlement processes.
