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Finance committee receives 2025 audit; auditors cite three repeat findings
Summary
Auditors from CliftonLarsonAllen told the Finance & Personnel Committee that the city's 2025 financial statements received an unmodified opinion and that the audit identified three repeat findings (statement preparation, adjustments and segregation of duties); the committee voted to place the audit on file.
Brian Grumbull of CliftonLarsonAllen presented the city's 2025 audit to the Finance & Personnel Committee and said auditors issued an "unmodified opinion" on the basic financial statements, indicating the statements meet professional standards.
Grumbull told members the audit includes a separate internal-control communication that describes three repeat findings: (1) CLA prepares the financial statements (a disclosure item); (2) audit adjustments proposed during the process that staff review and approve; and (3) segregation of duties concerns given the size of staff, particularly around payroll initiation, approvals and cash handling. He said those findings are common for organizations of the city's size and recommended continuing board oversight of budget and financial approvals.
The auditor highlighted that the general fund's unassigned fund balance remained strong, ending 2024 at just under $3 million and coming into 2025 with an unassigned balance of roughly $1.3'$1.4 million; revenues exceeded the 2025 budget by about $338,000, driven primarily by higher interest income. Grumbull noted long-term debt rose to about $14.3 million in 2025, primarily due to a $3.9 million general obligation issuance, and advised continued monitoring of statutory debt limits.
After the presentation and member questions, a motion to receive the 2025 audit and place it on file passed by roll call vote. No formal legal or regulatory violations were reported in the presentation; the auditor emphasized there were no "red flags" that rose to the level of immediate concern but urged continued attention to debt planning and internal-control items.
The committee voted to accept the audit and place it on file; staff will publish the audited financial statements and governance communication as required.
