Jacksonville accepts FY2025 external audit; auditors report clean opinion

Jacksonville's city council voted to accept the fiscal year 2025 external audit after an in-person presentation by Jake Connor of audit firm Malden and Jenkins.

Connor told the council the firm "got a clean opinion, which is a modified opinion," and walked members through the city's financial snapshot, saying total net position was about $313,000,000 for the current year, up from $288,000,000 the prior year. He said most of the increase was attributable to net investment in capital assets and to restricted and unrestricted fund balance movements.

The auditor detailed required communications and accounting-policy changes, including the city's implementation of GASB 101 for compensated absences and GASB 102 for risk disclosures. Connor also said the single-audit work covering two major programs (one federal, one state) produced no findings and resulted in a clean opinion on compliance for those programs.

On controls, Connor said auditors identified a material weakness related to year-end closeout journal entries that were recorded after the audit fieldwork began; he said the entries were corrected and are now reflected in the financial statements presented to council.

Connor noted one immaterial audit adjustment related to leases — a $63,515 adjustment in the water fund — and reminded council of upcoming GASB pronouncements (including presentation-focused guidance anticipated for FY26).

A council member moved to accept the auditor's report; the motion was seconded and approved by voice vote. The acceptance triggers the city's 60-day window to formally authorize the financial statements and associated performance indicators.

Next steps identified by staff included following up on the auditor-recommended disclosures and monitoring the noted financial performance indicators.