Carefree UCFD board accepts FY2025 audit; auditors report clean opinion with two future corrections

The Carefree Utilities Community Facilities District board voted to accept the fiscal year 2024–25 audit and adopted Resolution 2026-01 at its meeting, after CliftonLarsonAllen presented the audit results and answered board questions.

Kristin Kreh, treasurer of the Carefree Water Company, introduced the audit and thanked staff who supported the process. "We are really pleased to announce that we've had a clean audit," she said. CliftonLarsonAllen principal Lupita Martinez told the board the firm had issued an unmodified — commonly called a clean — opinion on the district's financial statements and provided a separate government-auditing-standards ("yellow book") report for federal funding compliance.

Martinez identified two items the audit team has left for management to correct in a subsequent year: a bond-premium amortization error of $144,000 and an omitted entry to record a $185,000 Verizon land-lease balance. She said these items were not material to the audit opinion and would be corrected in future reporting.

The auditor summarized key financial figures for the water fund as of June 30, 2025: total assets of $31,900,000; total liabilities of $25,500,000; and a fund balance of $6,500,000, of which $3,200,000 is invested in capital assets and about $3,300,000 is unrestricted. For the year, the water fund recorded roughly $4,900,000 in revenue and $5,200,000 in expenses, producing an operating income of about $321,000 and a net loss of approximately $282,000 after nonoperating items.

Board members asked for clarification when different tables showed varying debt amounts. A board member noted a $29,500,000 figure on one page and a $25,000,000 figure on another; auditors explained those differences reflected disclosure of principal versus principal plus interest, amortized bond premium and capital advances in separate notes, and that the accounting presentation is intended to help readers see future debt-service obligations.

After the presentation and questions, an unnamed board member moved to approve Resolution 2026-01 accepting the audit; the motion was seconded and the board voted in favor, recorded in the transcript as passing unanimously. The resolution formalizes acceptance of the FY2024–25 audit for the district.

The auditors provided contact information to board members for follow-up. The board did not take additional formal actions related to audit adjustments beyond adopting the resolution; the two items the auditors flagged are to be corrected by management in future financial statements.