External auditors issue clean opinion on FY2025 financial statements; one minor reporting timing issue noted

The city's external auditors presented the fiscal year 2025 audit to City Council and reported a clean, unmodified opinion on the city's financial statements.

Wade Sansbury, the partner in charge from Malden and Jenkins, told council the firm completed its work and issued a clean opinion. The auditors said the city prepared an annual comprehensive financial report and that finance staff's work allowed the firm to reach that conclusion. Because the city expended federal funds this year (auditors noted about $18.7 million), the city required a single-audit; the auditors said they observed one small instance of noncompliance tied to a reporting deadline but called it minor and not material to the financial statements.

Auditors also described a voluntary classification change by management: the building fund was treated as a major fund this year to subject it to additional audit procedures. That review produced no findings. The auditors reiterated that their role is to apply professional skepticism and that material weaknesses or findings would be reported if discovered.

During council questions, members asked how this audit differed from the state's directed reviews; the auditor and finance director said the two efforts have different scopes and objectives. The auditor emphasized independence and explained that the audit committee (a citizen advisory board the council appoints) participates in the selection process and makes recommendations.

The presentation closed with the auditor outlining upcoming GASB standards and offering continuing-education resources to council members and staff.