New Iberia audit shows two unmodified opinions, improved reserves and one minor finding

An independent auditor told the New Iberia City Council that the city earned two unmodified opinions for the fiscal year ending Oct. 31, 2025 and showed measurable fiscal improvement, including a stronger reserve position.

Brad Cer of Colder Slavin and Company presented the audit at the council meeting, saying the firm issued an “unmodified opinion,” the best grade auditors can give. He described the audit results as two clean opinions — one for the financial statements and a second, single-audit of federal grant funds — and noted the city had a single finding for the year, a relatively small issue related to funding the sinking (debt) fund that staff expects to resolve during the year.

“That’s the best opinion we can give as CPAs,” Cer said while summarizing the report to council members and staff.

Cer walked council through the sewer fund and broader balance sheet. On the sewer fund he reported operating revenues of about $4.8–5.0 million and operating expenses of roughly $6.36 million, noting that depreciation is a non‑cash expense that affects the operating loss line. He said net change in position improved this year due to capital contributions and transfers. When asked, staff and Cer confirmed the city’s sewer user-fee receipts are about $4.8 million.

On the balance sheet Cer highlighted approximately $23 million in cash and cash equivalents, roughly $31.4 million in investments, and capital assets with a net depreciable value just under $95 million. The city’s bonded debt fell from about $49 million to roughly $47 million year‑over‑year. Cer also said the net pension liability declined by about $5 million due to actuarial assumption changes, not actions taken by the city.

Using the material in exhibit four, Cer calculated that the city’s available net position equates to about 263 days of operations — well above the commonly cited 60‑day target. “You have 30 million which equates to 263 days,” Cer said, and the auditor characterized that as “extremely strong.”

Cer also presented per‑customer sewer metrics and peer comparisons. He reported the sewer customer base has decreased by about 400 customers over four years (roughly 100 customers per year) but that cash generation per customer has increased, partly because of rate changes and capital contributions. In a comparison with Youngsville, Lafayette and Broussard, New Iberia’s per‑customer operating metrics and police‑expenditure metrics were broadly in line with peers; Lafayette’s figures were higher in several categories, consistent with differences in system age and scale.

Council members asked several clarifying questions about the sewer numbers, depreciation, and how New Iberia compares with similar municipalities; Cer replied with exhibit references and pointed to the influence of capital spending and depreciation on cash‑based comparisons.

What happens next: Council accepted the presentation and had the audit documents available to review. Staff and council said they will monitor the single finding and return with follow‑ups as necessary.