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Council approves FY25 annual financial report; auditors cite adverse aggregation opinion over Friends of Library
Summary
Council accepted the FY25 comprehensive financial report and heard auditors say the city received a clean opinion on its primary government finances but an adverse aggregated opinion because the Friends of the Library did not provide financial information.
The Marshalltown City Council accepted the Fiscal Year 2025 Annual Comprehensive Financial Report on July 13 after a presentation from the auditing firm.
An auditor reported that, excluding component-unit transfers, city revenues totaled $55,000,000 and that expenditures decreased by about $2.5 million (4.62%) from the prior fiscal year. The audit noted the city's total outstanding debt was $71,989,808, including general-obligation and revenue bonds. The auditors issued an adverse aggregated opinion because Friends of the Marshalltown Public Library did not provide financial information that auditors considered material for aggregate presentation of component units; excluding component units, the city's financial statements received an unmodified (clean) opinion.
The auditor and the finance director said staff will continue to pursue improved documentation and training to prevent adverse reporting in future years. Council members asked whether refusing Friends of the Library donations would clear the adverse opinion; finance staff explained refusing funds would not necessarily change the audit opinion and recommended working with the Friends to obtain or produce appropriate financial statements.
Council voted to approve the AFCR by roll call.
