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Huachuca City council accepts clean 2024-25 audit; net position rises to about $12.3 million
Summary
Auditor Jennifer Frank reported an unmodified (clean) opinion and no material weaknesses for Huachuca City's 2024-25 fiscal year; council accepted the audit unanimously and discussed capital spending tied to the Skyline project and enterprise fund trends including landfill liabilities.
The Huachuca City Council unanimously accepted the Town's fiscal year 2024-25 audit after auditors delivered an unmodified opinion and reported no material weaknesses.
Jennifer Frank, the auditor presenting the results, told the Council, "Happy to report you had an unmodified clean opinion again this year." Frank summarized three reports included with the financial statements: the independent auditors' report, a report on internal control over financial reporting and compliance, and the state legal compliance report; all received unmodified opinions.
Frank said the Town's combined net position (equity) was about $12.3 million at June 30, 2025, and noted the net position of governmental activities rose by roughly $330,333 during the year. She attributed much of the revenue increase to Fort Huachuca contracts: "That increase was also primarily related to the Fort Huachuca contracts," Frank said; Town Manager Suzanne Harvey confirmed that characterization during the presentation.
Frank walked Council through fund-level details: governmental funds increased, while enterprise (utility) activities showed a decrease tied to depreciation and capital needs. The landfill fund remains capital-intensive, with restricted cash of about $2.9 million set aside for closure/post-closure costs; in 2025 the landfill recorded higher expenses than revenues and a net loss for the year.
Mayor Johann R. Wallace thanked staff and department heads for the work that produced the positive audit outcome: "this is a good audit. There are a few things there, but it's a good audit. It's actually an excellent audit," he said. The Council voted to accept the audit; the motion, moved by Johann Wallace and seconded by Christy Hirshberg, passed unanimously.
The audit acceptance does not by itself change town policy; Council and staff flagged ongoing priorities including monitoring enterprise fund cash flows, planning for future capital needs in the water and sewer funds, and continuing oversight of landfill liabilities.
