Council accepts FY 2024–25 audit; auditors give clean opinion but flag internal-control weaknesses

The city council voted to accept the fiscal year 2024–25 financial audit report, the auditors’ memorandum on internal controls and the required communications, after a presentation by the city’s independent auditor.

"I’m pleased to say that it is an unmodified or clean audit opinion," auditor David Alvey told the council, describing the firm’s independent view that the financial statements for the year ended June 30, 2025, were free from material misstatement. Alvey also summarized the audit process, saying auditors examine internal controls during an interim phase and test account balances in a final phase.

Alvey told the council the audit team identified items in the memorandum on internal controls that fall into three categories: material weaknesses, significant deficiencies and other matters. He noted prior-year audit adjustments and said several control weaknesses related to the period July 1, 2024, through June 30, 2025, reflected staff transition and the city’s ERP conversion.

Council members praised staff and the financial committee for their work on the audit and asked staff to continue correcting the items listed in the memorandum. One council member said the goal is to see the findings ‘peter off’ in future audits and return to a consistently clean report.

A motion to accept the audit, with the memorandum and required communications as amended, was made and seconded; the council approved the motion by voice vote. The transcript records the motion beginning at SEG 329, a second at SEG 340, and a voice vote recorded at SEG 341–344.