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Durant auditors give city a clean opinion; council approves annual financial reports
Summary
Auditors told the council the City of Durant received a clean opinion on its FY2024-25 financial statements, reporting increases in assets and unrestricted fund balances; the council approved the annual financial statements, auditor's report and the city's single audit.
Chris Heim, an auditor with HBC CPAs, told the Durant City Council that the firm issued a clean opinion on the city's fiscal 2024-25 financial statements and that the single-audit of federal funds showed compliance in all material respects. "We have audited the financial statements and issued a clean opinion," Heim said, noting the audits cover the city's government and business-type activities.
Heim summarized key figures from the report: total assets increased about 5% to roughly $186,000,000; total liabilities rose to about $46,000,000 (the change reflected an increase in net pension liabilities); and the city's net position increased by about $7,200,000 as of June 30, 2025. He highlighted that unrestricted net position for the general fund was approximately $12,200,000, a level Heim described as a healthy balance relative to recommendations.
Heim also explained that a restatement on the financials relates to implementation of GASB guidance requiring accrual of additional leave obligations: "There was a new implementation of a new accounting principle, GASB 101, which required accruing sick leave," he said. On the audit of federal funds, Heim said the city expended and received more than $750,000 in ARPA funds, which triggered a single audit; he reported no findings in that compliance work.
After a brief question-and-answer period about audit frequency and routine recommendations, Mayor Martin Tucker moved to approve the annual financial statement, independent auditors report and the single audit for fiscal year 2024-25. The council seconded and voted to approve the reports.
The approval means the city will publish the audited financial statements and proceed with routine follow-up as recommended by staff and the auditors. The council did not receive any formal audit findings or required corrective actions in the reports presented.
