Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Audit topic
No spam. Unsubscribe anytime.
Callaway receives clean fiscal 2025 audit; no findings reported
Summary
Auditors presented a clean (unmodified) opinion for Callaway's FY2025 financial statements, noting a $9.1 million increase in net position (including $2.25 million in federal loan forgiveness), healthy fund balances, and no audit findings; the city required a state single audit for $855,000 in state assistance.
Wade Stanberry, representing the city's auditors, told the Callaway Board of Commissioners the firm had issued an unmodified (clean) opinion on the city's FY2025 financial statements.
“The financial statements themselves are the responsibility and representation of the city's management. Our responsibility was to conduct the audit and then to issue an opinion. We have issued an unmodified or clean opinion,” Stanberry said.
Why it matters: A clean opinion means the auditors found no material misstatements in the city's financial reporting. Stanberry reported a $9.1 million increase in net position for the year, bringing net assets to about $96.1 million; that increase includes a reported $2.25 million federal loan forgiveness tied to Hurricane Michael. He said the general fund posted roughly $10.88 million in revenues (up from about $10.1 million the prior year), with taxes representing about 43% of overall revenues and intergovernmental receipts about 32%.
Details and context: Auditors also noted total city expenditures near $10.2 million for the year, with public safety accounting for approximately 48% of general fund spending. The general fund ended the year with about $10.8 million in fund balance, an increase of roughly $675,000 from the prior year; Stanberry characterized those as healthy reserves, noting unrestricted balances represented around 270 days of expenditures.
Stanberry said the federal threshold for requiring a single audit rose from $750,000 to $1 million, so Callaway did not meet the new federal single-audit threshold this year; however, it did have more than $855,000 in state financial assistance, which required a state single audit covering those expenditures, and auditors reported no issues with the use of those funds.
Next steps: Stanberry flagged upcoming accounting pronouncements the city should watch but said none were expected to have a significant near-term impact. The commission had no follow-up questions and moved on to other agenda items.
