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City audit issues unmodified opinion; net position falls $8.7 million after accounting change
Summary
Auditors Brown and Edwards issued an unmodified opinion on Bristol's fiscal year ending June 30, 2025, but the city's net position declined about $8.7 million due primarily to a new accounting standard expanding compensated‑absences liabilities. Auditors noted one budgeting finding and no federal funding compliance issues.
Bristol, Tenn. — Brown and Edwards presented the city’s annual comprehensive financial report for the year ending June 30, 2025 at the April 7 council meeting and issued an unmodified opinion, meaning the auditor believes the financial statements are materially correct under governmental accounting standards.
David Elkins, a director with Brown and Edwards, told the council the city's overall net position declined by approximately $8.7 million in the current year, driven largely by implementation of a new accounting standard that expanded the scope of recognized compensated absences (which now requires the city to estimate certain sick‑time liabilities). Auditors said that implementing the new standard increased reported liabilities by roughly $10 million, but stressed that the accounting change does not imply an operational change in how the city manages payroll or benefits.
Elkins summarized other key figures: general fund revenues finished about $2 million over final budget while general fund expenditures were roughly $760,000 under the final budget, and the general fund balance represented about five and a half to six months of expenditures at year end. The auditors reported one finding related to a capital facilities fund budget amendment where expenditures were increased without a corresponding revenue amendment; auditors said the underlying accounting was correct but the budget amendment entry needed adjustment for state reporting compliance. The single‑audit review of federal funds showed no findings related to required testing; during the year the city reported just under $10 million in federal funds receipts, lower than prior pandemic years.
Also at the meeting Dr. Tudor provided the Board of Education report, noting pre‑K and kindergarten registration, the upcoming testing schedule and summer STREAM program and school events.
The audit report and accompanying management discussion and analysis were filed with the state and are available on the city's website per staff.
