It’s a clean bill of health for the City of Buckeye’s financial statements.
At last night’s Buckeye City Council meeting, the city's CFO William Kauppi and CPA Jill Shaw of Heinfeld, Meech & Co. proudly presented the findings from Buckeye’s Annual Comprehensive Financial Report for the fiscal year ending in June 2024. The city was given an “unmodified opinion" -- a clean audit -- meaning no significant deficiencies or material weaknesses were found in the financial statements.
“Our primary role as city council people is our fiduciary responsibility to taxpayer funds,” said Councilmember Clay Goodman of District 6. “This is just a testament to how well we are doing with those things. So, [Kauppi], congrats to you and your team for continued good work.”
Heinfeld, Meech & Co.’s audit began in May with fieldwork being conducted from June through October. The report was issued to the city last month and city management accepted responsibility for the financial statements prior to the report being shown to city council at the Feb. 18 meeting.
“In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Buckeye, Ariz., as of June 30, 2024,” reads Heinfeld, Meech & Co.’s statement in the report, “and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.”
The findings
- The city is considered low risk for audit purposes, receiving clean audits for two consecutive years with any past corrections reflected in the current statements.
- The city held $973 million in its total net position for fiscal year 2024, an increase from $869 million in 2023. This metric is an indicator of the city’s financial condition and a steady increase in this number is important when seeking bonds, Kauppi noted. The report attributed this increase largely to higher-than-expected transaction privilege tax collections, State Shared Revenues, investment earnings and increases in water user fees.
- The city held $214 million in its government fund balance by the close of fiscal year 2024, increased from $193 in 2023. The increase was attributed in the report to sales tax collections, State Shared Revenues, investment earnings and permitting activity.
- Investment earnings increased by $9.2 million.
- General government expenses increased by $16.3 million; public safety increased by $7 million; highway and streets decreased by $3.4 million; culture and recreation increased by $3.4 million; development services increased by $5 million; engineering decreased by $2.7 million; and public works increased by $4.2 million
- One major federal program is selected each year for audit. In 2024, the aging cluster through the AZ Aging Council was selected with no issues identified.
- Two passed audit adjustments were identified as being omitted from financial statements because the effects were deemed immaterial, according to Shaw: Just more than $2 million in assets related to pension and post-retirement benefits and $1.2 million in liabilities related to long-term technology agreements. These items may be recorded in the future, she said.
- Because the audit beat the March 31 submission deadline, the city received a Certificate of Achievement for Excellence in Financial Reporting.
“The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department,” wrote Kauppi in his statement included in the report. “We wish to express our sincere appreciation to all members of every city department who contributed to its preparation and recognize the major effort of the Finance Department in administering the city’s accounting system and in preparing this report.”
The full audit can be viewed HERE.
Watch the full city council meeting HERE.
