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Auditors give Broomfield an unmodified opinion but flag one material weakness
Summary
External auditors reported an unmodified (clean) opinion on Broomfield's FY2025 financial statements and the single-audit programs tested, but identified one material weakness tied to adjusting journal entries and noted corrected and uncorrected misstatements; staff told council a capitalized fiber asset previously expensed added about $1.5 million to 2025 capital assets.
Auditors presenting the City and County of Broomfield's fiscal year 2025 audit told the council the financial statements received an unmodified (commonly called "clean") opinion and that the four federal programs tested in the single-audit received unmodified opinions as well. "That is essentially the best opinion you can get," auditor Britney Burns said during a July 14 council presentation.
At the same time, the audit identified one material weakness in internal control related to adjusting journal entries discovered during audit procedures. Burns explained that the auditor's internal-controls report is a communication of deficiencies, not an opinion, because auditors do not test controls. The audit also documented corrected misstatements and a set of uncorrected misstatements that management judged immaterial to the overall financial statements.
Council members pressed staff about a "correction of error" noted in the report. Finance staff said the issue related to capital project reporting: several fiber costs that had been expensed previously were capitalized in 2025, increasing capital assets by roughly $1.5 million. Finance director Clark (first reference presented by staff) said corrective-action steps are included in the memo and that the city is implementing a new asset-management system timed with an upcoming ERP deployment to avoid similar classification errors.
Auditors also discussed forthcoming GASB implementations (GASB 103 and 104 effective for the year ending Dec. 31, 2026) and walked through the single-audit package and the schedule of federal expenditures (CIFA). Burns noted the city's federal award spending has been steadily increasing due in part to spending down ARPA funds, and that the single-audit threshold for the year required testing of four major programs.
Council asked clarifying questions about terminology ("unqualified" vs. "qualified" opinions) and about whether the capitalization change affects budget appropriations; staff said capitalizing the asset does not equate to a budget increase but will affect the capital-asset ledger and future maintenance considerations.
