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Hot Springs audit: independent auditors issue clean opinion for 2025 fiscal year
Summary
Forbus Messars LLP presented the city’s 2025 annual comprehensive financial audit to the board; auditors issued a clean opinion with no reportable material weaknesses and cited a $50 million increase in assets largely due to capital investments and about $6 million positive net change in both government and business‑type activities.
Finance Director Karen Scott introduced the auditor’s brief and Becca Kaiser of Forbus Messars LLP told the board the auditors issued a clean opinion on the 2025 financial statements and found no reportable conditions rising to the level of a material weakness. "For the year ending 12/31/2025, the auditors issued a clean opinion on the financial statements," Kaiser said.
Kaiser summarized key financial changes: she reported assets rose by roughly $50 million (largely capital assets), business‑type activities showed a decrease in revenues tied to the nonrecurrence of a large capital grant in 2024, and interest expense increased after borrowing for wastewater capital projects. Kaiser said both governmental and business‑type activities had roughly $6 million positive change in net position.
Directors asked a few questions about pension‑liability fluctuations and recommended looking at best‑practice thresholds for fund balances; Kaiser noted those thresholds are guidance from associations (not required financial‑statement disclosures). The board voted to acknowledge the audit report as presented.
