Spearfish receives clean audit; auditors note three minor findings

The council received the city's audited financial statements for 2025 from auditor Jeff Yenny of Cadel Thorstenson LLP, who said the audit was clean overall and highlighted three findings: audit adjustments, a building permit fee calculation issue, and an adjustment related to federal expenditures on an AIP project.

"Clean audit," Yenny said in summarizing the report and praised city staff for transparent reporting. He pointed council members to page 88 for audit adjustments and explained the building permit fee calculation had been an issue in prior years and was re-examined this year. The auditor also reported that some pre‑award costs for an Airport Improvement Program (AIP) project were recorded and will be reported to federal authorities on the 2025 schedule of expenditures; that AIP funding pushed the city over the single‑audit threshold for federal compliance because of roughly $3,000,000 in AIP funding.

City staff and council asked clarifying questions about subsequent events dating and retirement assumption figures; staff said the actuary provides retirement assumption inputs and will fill blank subsequent‑events dates before finalizing the report. Council moved to accept the audited statements and approved them by voice vote.