Freeport accepts FY2025 audit; alderman presses for stronger auditor oversight

Director Michelle Richter presented the City of Freeport’s fiscal year 2025 audit and the city’s inaugural annual comprehensive financial report (ACFAR). The auditors issued an unmodified (clean) opinion and staff described measurable improvements in the city’s financial position, including an increase in total net position and a stronger general fund balance.

Richter said the city prepares financial statements in accordance with GAAP and that the auditors’ management letter contained recommendations designed to strengthen internal controls and financial management. She highlighted progress on prior recommendations, including inventory controls, and called out continuing areas of focus such as information‑technology security, grant reimbursement monitoring and budget monitoring.

Alderman Sanders challenged the council and staff on auditor selection and oversight. Sanders said council members had limited visibility into who is monitoring auditors and suggested the city evaluate the auditor-selection and oversight process. "We probably need an auditor to audit the auditor," Sanders said, urging more safeguards and transparency before accepting the report. Manager Boyer responded that the finance committee and the council have roles in oversight and noted that council members received a hard copy of the report to review.

Assistant city staff clarified the selection process: the audit firm was selected through a competitive bid process and council approval for the current firm occurred within the last five years, staff said. After discussion, council voted 5–2 to receive and place the audit and ACFAR on file.

What’s next: staff will continue implementing auditor recommendations and may present additional information about auditor selection and oversight if council requests it.