External auditors give city a clean opinion; compensated‑absences accounting change increases liability reporting

Jonathan Nybarger of Allen Gibson Hulick presented the city's FY2025 audit communications, telling the council auditors issued an unmodified opinion on the financial statements and that they were not aware of significant unusual transactions. He said the city implemented GASB Statement 101 related to compensated absences, which led to a reported compensated‑absences balance of about $3.3 million related to the implementation.

Nyberger identified one audit adjustment that reduced receivables and revenue by about $74,000 and referenced two uncorrected misstatements, including a timing difference in pension investments/employer contributions (about $835,000) that had been noted in the prior year's report. He said auditors did not identify difficulties with management during the audit and issued unmodified opinions on the city's single‑audit programs the team reviewed (including airport improvement program and ARPA-related grants).

City staff noted the single audit covered roughly $41 million in federal grant expenditures this year and thanked staff for their work; the auditors highlighted the absence of financial-statement findings in the audited programs. The council asked no follow‑up questions on the audit presentation at the meeting.

The presentation also included pension plan results: an actuarial update showing the policemen’s and firemen’s pension funded ratio rose to 104.9% as of Oct. 31, 2025, driven in part by a $9.9 million contribution funded from sales tax, and staff projected the plan could reach 120% funded in early 2027.

The audit presentation concluded with an offer by auditors to answer follow‑up questions; no formal action was taken at the meeting beyond acknowledgement of the reports.