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Independent auditors give Washington a clean opinion but flag fund pressures in 2025 report
Summary
Independent auditors from Bergen KDV issued an unmodified (clean) opinion on Washington's 2025 financial statements but reported a roughly $1.2 million gap between expenditures and revenues in the general fund, a water-fund operating loss and continuing challenges in the solid-waste fund, recommending ongoing monitoring of enterprise fund rates.
Bergen KDV presented the City of Washington's audit for the year ended Sept. 30, 2025, and delivered an unmodified (clean) opinion while highlighting several areas the city should monitor.
"We are providing a clean unmodified opinion," auditor Andy Grace told the council, explaining that the firm found the financial statements presented fairly, in all material respects. He said the general fund balance decreased roughly 3% in the year, with expenditures and other financing uses exceeding revenues and other financing sources by about $1.2 million. Taxes remained the largest revenue source, accounting for about 77% of general fund receipts, and overall general-fund revenues increased about 5% year over year, driven by a roughly $764,000 increase in taxes.
Grace walked the council through enterprise funds, noting the water fund recorded an operating loss of about $168,000 for 2025 and that the unrestricted net position for the water fund moved to a negative position that should be monitored. "This fund does have a negative cash position as well and should continue to be monitored to ensure that fees and charges are sufficient to cover those operating expenses," he said. By contrast, the sewer fund experienced a surplus and an increase in unrestricted net position to approximately $1.44 million after rate increases.
The solid-waste fund also showed operating challenges, with a 2025 operating loss of about $1.1 million and a landfill-care liability recorded in the financial statements of roughly $7.7 million. Grace recommended continued evaluation of rates and operations to ensure enterprise funds can cover costs.
Councilors asked clarifying questions about trends, internal controls and the single-audit components related to federal highway planning and construction grants; Grace reported one reportable finding related to an error correction and no federal-compliance findings for the single-audit. The audit presentation closed after council questions and brief discussion.
Next steps: staff and council will continue monitoring enterprise fund performance and consider rate or policy changes where necessary; the audit will be part of annual financial reporting and budget planning.
