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Independent audit: Merriam receives unmodified opinion but auditors flag material weakness in accounts-payable cutoff
Summary
Contract auditors reported an unmodified (clean) opinion on Merriam's 2025 financial statements but noted two audit adjustments and one material weakness tied to accounts-payable cutoff; the council acknowledged receipt of the audit, 7–0.
The city's independent auditors presented the results of the 2025 audit and issued an unmodified opinion on the financial statements, meaning the auditors found the statements materially accurate. Amy Tharnish, the auditor presenting the report, said the audit required two adjustments — one to record construction in progress and accounts payable in the capital improvement fund and one to reallocate interest earnings — and that the city had not adopted new accounting policies.
Tharnish said auditors identified one material weakness related to accounts-payable cutoff procedures because of the size of an adjustment to the capital improvement fund and recommended management review its cutoff processes; management's planned response is included in the audit letter. Council moved to acknowledge receipt of the city's 2025 financial audit reports; the motion passed on a recorded roll-call vote, 7–0.
Director Borth introduced the presentation and answered council questions about the "Triple Crown" public-facing documents that accompany the audit reporting.
