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Hopewell submits overdue audits, auditor issues unmodified opinion; council honors staff
Summary
Hopewell officials announced completion and submission of the city's overdue annual comprehensive financial reports (ACFRs) and received an unmodified opinion on the FY25 financial statements. Auditor David Foley noted improvements in internal controls but also recommended continued monthly reconciliations; Council presented proclamations honoring staff and external partners.
Hopewell officials told the City Council on April 28 that the city has completed and submitted past-due annual comprehensive financial reports, drawing a clean (unmodified) auditor’s opinion on the FY25 financial statements while noting remaining internal-control findings.
“We issued an unmodified opinion on the city’s financial statements,” said David Foley, the city’s external auditor, describing the FY25 audit results as a clean opinion on the financial statements while noting the city still has work to do on internal controls. Foley told council the number of internal-control findings had been reduced compared with prior years and recommended timely monthly reconciliations to address remaining weaknesses.
Deputy City Manager Stacy Jordan and municipal staff walked council through the finance team’s work this year, including updated financial policies, fund-balance classifications, and steps taken toward obtaining an initial bond rating. Jordan noted the city has restored key practices and posted policies and reports online, and she described criteria advisers and rating agencies use to evaluate Hopewell’s readiness for a bond rating.
Council members and the mayor credited the finance team, outside advisers and audit partners for the progress. Mayor Parton led an extended recognition segment honoring former officials, state partners, Alvarez & Marsal (referred to in the meeting transcript), the turnaround consulting team and the finance staff. The council presented formal proclamations recognizing Stacy Jordan and interim city manager Michael C. Rogers for their leadership in stabilizing city finances.
City Manager Michael C. Rogers, who also addressed the meeting, thanked staff and called the milestone an important step toward restoring fiscal stability and enabling capital planning. Foley told council that while the opinion on the financial statements was unmodified, the report over internal controls still contained material weaknesses and that continued adherence to improved procedures was necessary to reach a fully clean audit in FY26.
Council members asked follow-up questions about the timeline for FY26 audit completion; Foley said auditors and management could aim for a December 15 completion date if monthly reconciliations and other procedures are performed throughout the fiscal year.
What’s next: staff said the FY25 ACFRs will be uploaded to state and federal clearinghouses and that the city will continue implementing reconciliation and control improvements in advance of the FY26 audit and the planned work with financial advisers on bond-rating preparations.
