Conway audit finds ‘unmodified’ opinion, city reports stronger reserves

The City of Conway received an unmodified (clean) audit opinion for fiscal year 2025, city officials were told at the Jan. 20 council meeting.

Nathan Skipper of Smith SAP, CPAs told council that the city’s financial statements “are presented fairly in accordance with generally accepted accounting principles” and that auditors found no material weaknesses in internal controls and no reportable compliance issues. “We have issued an unmodified opinion on the city’s financial statements,” Skipper said.

Skipper said Conway’s total net position increased by roughly $14.8 million to about $124.1 million at year‑end, driven in part by investment in capital assets — including donated property such as the Granger site and Lake Busby that must be recorded at fair value under accounting rules. He said the city’s unassigned general‑fund balance was approximately $21.4 million, or nearly 49% of annual general‑fund expenditures, well above the city’s reserve policy.

The auditor also noted Conway’s conservative debt profile, reporting about $1.4 million outstanding related to a lease as of June 30, 2025. Councilor Goldfinch asked Skipper to clarify the capital‑expenditure figures in plain language; Skipper explained that some of the increase is noncash (donated assets) rather than new spending.

Mayor and council members thanked the finance team and accepted the presentation. No formal action was required on the audit presentation; the report was placed on the record.