Huachuca City accepts clean audit, financial position stable though landfill and utility items noted

Auditors presented and the Huachuca City Council unanimously accepted the town's financial audit for fiscal year 2024–25, which carried an unmodified (clean) opinion and no material weaknesses, the auditor said.

Jennifer Frank told the council the independent auditors' report, internal-control review and state compliance report all received unmodified opinions. "Happy to report you had an unmodified clean opinion again this year," she said, and noted the reports showed no material weaknesses or significant deficiencies.

Frank summarized key figures: total net position was about $12.3 million at June 30, governmental activities' net position rose by roughly $330,333 in 2025, and enterprise funds showed mixed results. She highlighted the landfill's long-term obligations, citing a closure/post-closure liability of about $3.8 million, and noted utility funds carried long-term debt and depreciation-driven declines in capital assets.

Mayor Johann Wallace called the audit "an excellent audit," thanked staff and department heads for their stewardship, and moved to accept the audit. The motion was seconded and passed unanimously.

The presentation included multi-year trend slides showing improved general-fund cash between 2021 and 2025 and a one-time 2024 adjustment related to an interfund receivable write-off tied to the Skyline project. The auditor recommended continued attention to proprietary funds' cash flows so enterprise funds can set aside resources for capital needs.

The council recorded acceptance of the audit; no further action was required. The town manager and department heads will remain responsible for implementing routine financial and capital planning recommendations identified in the reports.