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Auditors give Grant unmodified opinion on major funds; flag asset‑record and control weaknesses
Summary
CliftonLarsonAllen reported an unmodified opinion on the city’s major funds but a qualified opinion on governmental activities because historical capital asset records are incomplete; auditors also reported four material weaknesses and a $175,000 restatement of beginning fund balance.
CliftonLarsonAllen presented the City of Grant’s audited financial statements for the year ending Dec. 31, 2025, saying the city received an unmodified opinion on its major funds but a qualified opinion on governmental activities because historical capital asset records are incomplete.
Chris Knopik, principal with CliftonLarsonAllen, told the council that “the city has received an unmodified opinion on each of your different major funds” but that auditors identified four items considered material weaknesses in internal control, including financial statement preparation, segregation of duties and incomplete capital asset records. He said the audit also required a prior‑period adjustment that restated the city’s beginning fund balance by about $175,000 because billings for building permits and inspections were delayed and not previously recorded.
Ezra Katz, the audit manager, reviewed the city’s financial results and peer comparisons. He said cash and investments rose about $258,000 from 2024 and that revenue increased by roughly $234,000 — largely from higher licenses and permits and recognition of COVID‑related intergovernmental aid. Katz noted expenditures decreased overall in 2025, driven by lower public‑works capital spending compared with 2024.
Knopik emphasized the practical governance steps the council should oversee given the control findings, including improving documentation for large contracts, ensuring contractor withholding affidavits are collected before final payment, delegating electronic funds transfer authorization annually and designating a custodian if a petty‑cash fund continues to be used. He said the city has already made or planned fixes for several compliance exceptions, including joining Sourcewell and obtaining required broker certifications.
The auditors and council agreed next steps include addressing the capital asset records and ensuring required contracting and cash controls are documented; Knopik said upcoming GASB standards will also affect reporting in future years.
