Auditor gives Midway a clean FY2025 opinion; fund balance exceeds state 35% threshold at year‑end

Child Richards accountant Katie Giddons presented Midway's FY2025 financial statements during the Feb. 17 council meeting and described an increase in general fund cash and capital projects gains. Giddons said the general fund reported approximately $8.0 million in revenue and just under $5.0 million in expenditures, yielding a pre‑transfer surplus of roughly $3.4 million and a net change after transfers of about $1.7 million. She also said depreciation (notably $693,000 against water infrastructure) depressed operating results for the water and ice‑rink enterprise funds; when depreciation is excluded, the water fund and ice rink would show positive operating results.

Auditor Ben Probst of Gilbert and Stewart, CPAs, delivered an unmodified (clean) opinion stating the financial statements present fairly, in all material respects, Midway City's financial position as of June 30, 2025, in accordance with U.S. generally accepted accounting principles. Probst also reported one compliance finding required by the State Compliance Audit Guide: Midway's fund balance measured at year‑end exceeded the state's 35% threshold by approximately $434,000. Probst emphasized this is a point‑in‑time measurement at fiscal year end rather than an ongoing daily threshold and said existing workaround controls for fraud risk were satisfactory.

Probst confirmed the city could transition to fully electronic billing documentation if records are scanned and uploaded in accordance with state requirements. Council members asked clarifying questions about depreciation schedules and controls; auditors and accounting staff responded that standard schedules were used and no significant deficiencies were identified.