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City auditor issues clean opinion on 2025 finances but flags budget monitoring items
Summary
External auditors gave Rome an unmodified opinion on the 2025 financial statements, noting revenue growth but a drawdown in fund balance and recommending improved monitoring of special revenue budgeting and OPEB reconciliations.
The city's external auditors, Malden & Jenkins, issued an unmodified opinion on the 2025 financial statements, presenting them as a fair statement of the city's financial position for the year ended Dec. 31, 2025. "I'm pleased to share we did issue an unmodified opinion," auditor Will Derses said during the commission meeting.
Derses told commissioners that taxes comprise most general fund revenue: "Of that 35,800,000 in taxes, about $13,000,000 is comprised of current-year property taxes," and total general fund revenues were about $42,000,000, an increase of roughly $2,000,000 from the prior year. He warned the commission that recurring transfers (including a fire fund subsidy) and rising personnel costs had drawn down the fund balance in recent years.
While the audit contained no material weaknesses or significant deficiencies, the auditor recommended managerial fixes and closer monitoring. "We report a no findings," Derses stated, but he urged attention to the hotel/motel special revenue fund (where the adopted budget exceeded available fund balance), old receivables, and the city's OPEB (other post-employment benefits) accounting. The firm also noted that the city's expending over $1,000,000 in federal funds required a single audit of a major federal program.
In a follow-up exchange with commissioners, Derses said the audit compares actuals to the final amended budget rather than the original adopted budget and emphasized internal monitoring: "...monitoring availability, maybe on a monthly basis... is where the kind of level commission and management keep an eye on the departments and monitor for... changes that may be needed toward the end of the year." A commissioner asked whether after-the-fact amendments always cure compliance concerns; the auditor said context matters but indicated that, from an audit perspective, alignment with the final amended budget can resolve findings.
The auditor offered a full copy of the report for commissioners to review and fielded several technical questions from the finance committee. The audit presentation closed with the firm's written recommendations for improved budgeting practices and continued monitoring of OPEB contributions.
