Council accepts 2025 audit; auditors report clean opinion and recurring findings

Watertown City Council accepted the city's 2025 financial audit after a remote presentation by the audit team.

Brian Stavenger, a partner presenting the executive summary for the audit firm, said the city received a clean, unmodified opinion on its financial statements and on the federal single-audit. He told council the city's overall unrestricted cash and investments are consistent with recent years and that the general fund's reserves cover "just over 7 months" of expenditures, down from about eight months the prior year. "We're seeking our opinion on your financial statements, the city received once again a clean unmodified opinion," Stavenger said.

Stavenger also reviewed recurring audit findings that matched the prior year: proposed year-end journal entries for accounts payable, compensated absences, and leases; a segregation-of-duties issue where one staff member handles year-end reconciliations; and a federal-award reporting finding tied to insufficient documented review. Stavenger said staff and auditors have a plan to address those items going forward.

Councilman Shutti moved to accept the audit, Councilman Hoyer seconded, and the motion carried on a voice vote.

The acceptance is procedural; the audit materials and the annual comprehensive financial report contain further detail on the findings and management responses, and councilmembers used the presentation to press staff on reserve levels and implementation plans for the audit recommendations.