Belton auditors give FY2025 financial statements an unmodified opinion, note two control deficiencies

Emily Sheldon, a partner with the city's audit firm Swindoll, Jansen, Hawk & Lloyd, told the council the FY2025 financial statements are "presented fairly in all material respects in conformity with generally accepted accounting principles," and the auditors issued an unmodified opinion.

Sheldon summarized the audit work, explaining auditors performed test procedures, assessed accounting estimates and reviewed management's presentation. The report listed several significant accounting estimates (fair value of investments, allowance for doubtful accounts, pension-related items, other post-employment benefits, accrued compensated absences and subscription-based IT arrangements) and stated the city's estimates appeared reasonable based on audit procedures.

The auditors recorded adjusting journal entries and identified two significant deficiencies in internal control: (1) weaknesses in controls over inventory of capital assets, especially depreciation and tracking of disposed assets (a repeated item), and (2) significant adjustments to financial statements related to grants receivable and the net pension liability. Management provided responses and corrective action plans; auditors noted earlier fiscal year 2024 material weaknesses had been resolved.

Council members asked about why deficiencies recurred; staff explained some capital assets dating back 20-plus years had not been disposed of in the records and that grant receivable entries and adjusting journal entries accounted for the other noted items. The auditor indicated no disagreements with management and that staff had been responsive during the fieldwork.

The audit report and accompanying schedules in the council packet list the adjusting entries and management's representation letter. Council members were invited to send further questions to staff ("send them to Casey").