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Portland auditors report FY2025 financial statements "materially fairly presented," recommend internal audit
Summary
External auditors told Portland's joint city and school finance committees on April 2 that the FY2025 financial statements are "materially fairly presented," reported no uncorrected misstatements and recommended creating an internal audit function and tightening Munis ERP administrative access controls.
Scott McIntyre, a partner at CBIZ, told a joint meeting of Portland city and school finance committee members on April 2 that the auditors concluded the city’s financial statements for the year ended June 30, 2025 are "materially fairly presented." The presentation covered audit scope, accounting-standard updates and several observations on processes and controls.
McIntyre said the audit followed both generally accepted auditing standards and government auditing standards and that the work "went very well" this year. "In our opinion, your financial statements are materially fairly presented," he told committee members. He said the auditors identified improvements in school payroll processes, continuous review of P‑card transactions and a cash-receipt policy that "appears to be properly designed." He added there were no uncorrected misstatements and no disagreements with management about GAAP application.
Why it matters: the audited results feed the ACFR and affect debt-management disclosures, bond covenants and public confidence in budget reporting. McIntyre reported a positive budgetary result for FY2025 — "a positive increase to fund balance on a budgetary basis of just over $16,100,000" — and said the city’s debt profile shows roughly 75% of governmental-activity debt will be repaid within 10 years, a comparatively rapid amortization.
The auditors also recommended governance changes. McIntyre said CBIZ "do[es] continue to recommend that the city continue consider an internal audit function" and urged the committee to review administrative access controls to the city's Munis ERP system to reduce operational risk.
Committee members asked few questions; Brendan (city finance staff) thanked school staff and auditors for their work and noted continued partnership between the city and schools on addressing process findings. McIntyre pointed committee members to the full ACFR and the other reports included in the audit package for detailed schedules and disclosures.
What’s next: the audit reports and ACFR are in the meeting backup materials for detailed review; committee members did not take formal action on the audit presentation at this meeting.
