Audit: City auditors give unmodified opinions; one repeat finding in school lunch program

CliftonLarsonAllen audit manager Zach Fentross told the Audit Committee the City's 2025 single audit produced unmodified opinions for three federally funded programs: the child nutrition cluster (school lunch), the American Rescue Plan Act (ARPA) grant and a FEMA disaster grant. "All 3 received an unmodified opinion," Fentross said, and the firm reported no qualified opinions.

Auditors said the schedule of federal awards showed $20,700,000 in total federal expenditures for the period and that the audit report was dated March 13, 2026, and uploaded to the federal clearinghouse before the March 31 deadline. "So the city did meet the March 31 deadline," Fentross said.

Jim Petrovski, the engagement signer, explained the single-audit procedure for newer committee members: the firm selects programs for compliance testing based on federal spending, program size and risk, then tests for compliance with applicable federal requirements. "It's based on programs," Petrovski said, describing why the three programs were chosen for 2025.

The auditors identified a single finding this year in the child nutrition cluster. Fentross said auditors sampled 37 claims and uncovered a reporting issue in one sample; he characterized it as a repeat of finding 2024-002 while noting other prior-year findings were corrected after the city implemented corrective actions. Petrovski said the remaining circumstance appeared to be an isolated data-entry or count error tied to the summer meals program and that controls have been implemented to address it going forward. He identified Amy Mistrow as the primary school-side contact on the matter.

Chair Martha Bixby moved the committee to take the required procedural step of forwarding the single audit report and the management letter to the finance committee. Councilor Julia Malachy moved to "approve all 3 items and forward them to the finance committee." The chair called for 'aye' and the transcript records an affirmative response; no opposition or abstentions were recorded.

What this means: an unmodified opinion is the auditor's highest standard for financial statement and compliance reporting; the single finding in the school lunch program will be tracked as a repeat item but auditors and school-side staff told the committee that corrective actions reduced the scope of issues from prior years.

Next steps: committee members asked for follow-up on the child nutrition corrective action and noted the auditors will present schedules and any additional details to the finance committee when the report is docketed.