Auditor gives NorthlakeTown a clean opinion; general fund and capital balances rose

Louis Breedlove, senior audit manager at Brooks & Watson, presented the town's 2025 audit and told council the firm issued an unmodified (clean) opinion.

"I'm happy to report, as John noted, a clean opinion," Breedlove said, and he walked council through audit procedures, components of the report and key financial highlights. Breedlove highlighted a roughly $1,000,000 increase in the general‑fund balance (largely driven by permitting revenue) and a $1,400,000 rise in capital improvements tied to bond issuance and ongoing projects. He also noted the water and sewer proprietary fund showed operating income and a post‑transfer net position increase tied to capital projects.

Breedlove described the audit's risk‑based approach, compliance testing (bid, grant, and Public Funds Investment Act checks), and routine year‑end journal entries; he said controls were strong and that management implemented adjustments appropriately. Councilors asked how Northlake compares with other municipalities; Breedlove said comparisons are difficult but that Northlake's controls and fund balances were healthy. Staff said the audit and full report are posted on the town website under the Finance department's annual comprehensive financial report.

Next steps: staff will continue to publish the audit materials and incorporate the audit findings into the upcoming budget and CIP discussions.