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Grand Island audit gives unmodified opinion but notes material journal-entry weakness
Summary
An independent auditor issued an unmodified opinion on Grand Island’s financial statements for the fiscal year ended Sept. 30, 2025, but the report identified a material weakness related to material journal entries needed to present the statements.
An independent auditor gave Grand Island an unmodified opinion on the city’s financial statements for the fiscal year ending Sept. 30, 2025, but flagged a material weakness that required material journal entries to present the statements.
Tim Lens of Bergen KDV (presenting with Creative Planning) told the City Council the audit covers a 110‑page report and “the first two paragraphs there is our audit opinion. We're giving an unmodified opinion over these financial statements in accordance with standards.” He directed council members to the management’s discussion and analysis and the “cliff notes” summary on page 108 for the overall results.
Lens said the report shows the city’s net position as $99 million and described the composition of assets and liabilities; he also stated that $153 million is unrestricted (as presented in the report). He summarized that the general fund’s ending balance covered roughly 67% of the fiscal year’s expenditures and that, without new revenue, the fund could operate about eight to nine months based on current balances.
The auditor also described required supplementary information, notes to the financial statements and reconciliations between fund financial statements and government‑wide statements. Because the city expended more than $1 million in federal funds, the report included a single audit; Lens said the single‑audit compliance testing covered the Drinking Water State Revolving Fund, the Public Safety Partnership and Community Policing grants, and the Emergency Operations Center grant and that the city had no findings on those federal programs.
Lens said the report included “one material weakness just due to material journal entries needing to be required to get the financial statements in the current presentation here,” and added that the weakness was similar to the prior year but that the finance department had made strides to address it.
Council members asked clarifying questions about segregation of duties and controls. Lens said compensating controls existed and that turnover in the finance department had been managed without additional reportable concerns.
The audit was received for the public record; council members thanked the presenter and moved on to other agenda items.
