Auditor: 2025 cash-audit found no red flags; full financial audit planned for next year

Kenny Hales, the contracted auditor, presented the 2025 audit and told the Pleasant Valley Board the engagement was primarily a cash-focused review rather than a full financial-statement audit. "I had no problems with what I saw," Hales said, summarizing his review of receipts and payments.

Hales explained the current report is like a detailed checkbook and does not include a full balance sheet, depreciation schedules, or capital-asset listings. He said he will prepare a more comprehensive audit in 2026 that includes asset valuation and a depreciation schedule so the city can better evaluate long-term needs — for example, when to replace vehicles or large equipment. "The audit next year will give you an idea as what we need to plan to do," Hales said.

Board members asked for timing and scope; Hales recommended completing preparatory work early (ideally by March or April) so a full audit can be filed with the state auditor on time. Members flagged court fund reporting and asked staff to follow up on ticket-revenue limits discussed in the presentation. The board heard Hales recommend a management letter with operational suggestions, including capitalizing large repairs when appropriate and documenting asset histories for future audits.

The board did not take formal action to hire a different auditor; Hales indicated he is contracted to perform the 2026 audit as well. The auditor’s presentation was followed by questions about next steps and a request that staff bring more detailed supporting schedules to make next year’s engagement smoother.