Huachuca City audit: clean opinion, modest net position gain; council accepts report

Jennifer Frank, who presented the Town's 2024-25 financial audit, told the Huachuca City Town Council on April 9 that the auditors issued an unmodified (clean) opinion and found no material weaknesses in internal control or state legal compliance. "You had an unmodified clean opinion again this year," Frank said during her presentation. The report shows total net position of roughly $12.3 million to $12.4 million and a net position increase of about $330,333 for the year.

Frank summarized fund-level shifts: governmental funds rose by approximately $544,000 while business-type (utility) activities fell by about $211,000; capital assets increased largely because of the Skyline project. She pointed council members to several condensed comparative statements in the packet and noted positive cash trends in general and water fund balances, while urging continued attention to setting aside funds for future capital needs. Mayor Johann R. Wallace thanked department heads and staff for the work that produced the strong audit and the council voted to accept the audit report unanimously.

The audit presentation also highlighted revenue drivers and fund trends: an overall revenue increase of about $394,000 (largely from charges for services related to Fort Huachuca contracts), a governmental fund cash balance of about $746,000 at June 30, 2025, and guidance from the auditor to maintain funding for future infrastructure and equipment needs. The council took no substantive policy action beyond formally accepting the audit at the meeting; the acceptance will be reflected in the official minutes and financial records.