The city of Craig received a clean bill of financial health for 2024, with independent auditors issuing unmodified opinions on the city’s financial statements, internal controls and federal grant compliance during a presentation at the June 24 City Council meeting.

Kevin Kimball, of The Adams Group, LLC, presented the audit and summarized key takeaways.

“Once again, for the City of Craig, we’re issuing an unmodified opinion, which is the cleanest form of opinion that we can issue as independent auditors over financial statements,” Kimball said.

The audit, which includes three formal reports, reviewed the city’s financial position as of Dec. 31, 2024, and confirmed no major weaknesses or deficiencies.

“It’s a very, very clean audit for 2024,” Kimball said. “We have no major findings or ‘red flags’ to report.”

According to the final report, the city’s total net position rose by $10,807,893 over the previous year, reaching a total of $93,352,575. This includes a general fund balance of $23,380,491, an increase of nearly $3.5 million, which City Manager Peter Brixius highlighted as a major success later in the meeting.

“My favorite part of the audit is on page four where it says a general fund balance of $23,380,491,” Brixius said. “That’s an increase of almost $3.5 million over the prior year.”

The increase in net position was largely driven by federal and state grant funding, increased investment earnings and conservative fiscal management.

“The City’s finances are strong, sound and stable because of solid, dedicated and committed financial and operational management,” the audit’s management discussion and analysis stated.

Kimball emphasized the enhanced level of scrutiny the city underwent due to its participation in certain federal grant programs.

“We did conduct our audit under those governmental auditing standards, which involve a more enhanced review of internal controls as they relate to the financial statements themselves, as well as the controls over the federal grants that the city was administering during the fiscal year,” he said.

Craig was subject to a single audit due to its expenditures of more than $750,000 in federal funds, including one major program tested in 2024.

“For 2024, it’s an unmodified opinion over the major federal program which means that we didn’t find any questionable costs,” Kimball said.

He added that the city demonstrated compliance with all applicable regulations and implemented corrective action from a prior-year finding.

“We did have one finding last year that related to cutoff of grant revenues in relation to the 60-day period availability. … The city immediately implemented compensating controls and during our testing this year, those controls were implemented effectively,” Kimball explained.

The 2024 audit also required the city to adopt a new accounting standard, called GASB Statement No. 101, which expanded the scope of compensated absences recorded in the financial statements.

“There was a slight increase in the total compensated absence balance shown in 2024 compared to previous years, but not a material impact to the financial statements,” Kimball said.

Other key financial highlights included:

Total revenues of $32.3 million citywide, with $22.5 million from governmental activities and $9.7 million from business-type operations.

A combined unrestricted net position of $35.4 million available for future obligations.

Increased net positions in all enterprise funds, including a $1.3 million gain in the Wastewater Fund and a $655,861 gain in the Water Fund.

Kimball commended the city’s finance department and staff for their preparedness and cooperation throughout the audit process.

“Everybody that we work with at the city was quick to respond,” he said. “We enjoy working with them and we appreciate working with the city and we’re very happy to be able to issue three clean opinions.”

City officials also praised Finance Director Mindy Elliott and department heads for their contributions.

“I commend Mindy and her team and Peter. Great work,” said Councilmember Andrea Camp.

Mayor Chris Nichols added, “Mindy, you’ve been there a little bit over a year and have done an outstanding job.”

The full audit report, financial statements and supplementary materials are available for public review at Craig City Hall, upon request from the Office of the Finance Director or on the city’s website.