Murphy council accepts FY2025 comprehensive financial report, auditor notes clean opinion

The City of Murphy City Council voted unanimously March 3 to accept the annual comprehensive financial report (ACFR) for the fiscal year ending Sept. 30, 2025.

Brent Young of Weaver, the city's external auditor, told the council the audit produced an unmodified, or "clean," opinion. "The report is an unmodified opinion — that means it's a clean opinion," Young said, adding that auditors found no material weaknesses or significant deficiencies. He noted implementation of GASB 101 required a change in how compensated absences are reported and reduced the beginning net position of governmental activities by about $1,100,000, which he called an accounting presentation change rather than an error.

Young summarized financial highlights: total governmental revenues were $23,800,000 (a 13% decrease from the prior year largely attributable to a prior‑year ARPA grant of roughly $3.7 million), total governmental fund expenditures totaled $24,600,000 (a 9% decrease), and combined governmental fund balances were about $25,500,000 at 09/30/2025. The general fund's unassigned fund balance was reported around $11,600,000, representing about 58% of general fund expenditures.

Council members asked about transparency and financial health; Young said the city has been responsive to audit requests and described the city as "pretty financially sound," noting the healthy fund balance and generally well‑funded pension position. After questions, a council member moved to approve the ACFR, the motion was seconded and the council voted unanimously to accept the report.

Council acceptance means the ACFR and accompanying governance communications will be filed and made available to the public, and staff indicated presentation documents and materials will be posted online for resident review.