City of Buckeye_ Audit Council Presentation_Feb 2026.pptx

Audit Communication to 
Governance
Year Ended June 30, 2025
Presented by Jill A. Shaw, CPA
February 3, 2026

Audit Timeline
• May 2025 – Engagement Letter Issued
• July 2025 – Preliminary Fieldwork
• September/October 2025 – Final Fieldwork
• December 2025 – Audit Reports Issued

Council Acceptance of the Audit Reports
City management has already accepted responsibility for the 
financial statements and maintenance of internal controls.
Arizona Revised Statutes 9-481(H):  Within ninety days after completing an audit pursuant to 
this section, the governing body of the city or town shall require the certified public 
accountant who performed the audit to present the audit results and any findings to the 
governing body in a regular meeting without the use of a consent agenda, and the governing 
body shall demonstrate compliance with section 41-1494.

Scope of Audit Services
• Perform an audit in accordance with U.S. generally accepted 
auditing standards, Government Auditing Standards, and Uniform 
Guidance (Single Audit)
• Perform an audit of seven Community Facility Districts
• Issue an accountant’s report based on an examination of the 
Annual Expenditure Limitation Report
• Issue an accountant’s report on Highway User Revenue Fund 
(HURF) expenditures in accordance with ARS §9-481(B)(2)

Responsibilities of Auditor and 
Management
• Fraud Communications
• Inquiries regarding fraud and noncompliance 
were conducted with members of management 
and other employees
• Responsibility for fraud ultimately rests with 
management and the Council
• Auditor’s Responsibilities
• Audit designed to provide reasonable, not 
absolute assurance
• Management is ultimately responsible for the 
financial statements

New Accounting Policies or 
Standards Implemented
• Governmental Accounting Standards Board 
(GASB) Statement No. 101, Compensated 
Absences, was implemented during the 
year.
This new standard updates the recognition and measurement guidance for 
compensated absences which now requires recognition of a liability for leave that is 
attributable to services already rendered and is more likely than not to be used for time 
off or otherwise paid in the future. This resulted in a restatement of $1,732,581 to 
beginning balances reported in the financial statements.

Significant Estimates in the Financial 
Statements
• Assumptions used in the actuarial 
valuations of the pension plans

Summary of Audit Adjustments
Audit adjustments are necessary for known or likely misstatements identified in the 
financial statements during the audit that are not trivial in nature.
We are pleased to report that during the 
course of the audit, we did not recommend 
any audit adjustments that meet this criteria.

Other Required Communications
• There were no disagreements with 
management over financial accounting, 
reporting or audit matters.
• Management provided the required 
representation letter at the conclusion of the 
audit.
• Heinfeld Meech continually assesses client 
relationships to ensure compliance with 
relevant ethical requirements such as 
independence.

Annual Comprehensive Financial
Report Highlights
• Page 1 - Independent Auditor’s Report (Unmodified Opinion)
• Page 6 - Management’s Discussion and Analysis
• Page 17 – Financial Statements
• Page 33 – Notes to the Financial Statements
• Page 121 – Statistical Section

Single Audit Report Highlights
Schedule of Findings and Questioned Costs
• No significant deficiencies or material weaknesses noted
• Major Federal Programs: 
• Airport Improvement Program
• City is considered low-risk

Final Comments
• Management and staff were cooperative and helpful during the 
audit process.
• Audits met all state and federal regulatory deadlines.  
• The Annual Comprehensive Financial Report was issued in time 
to meet the GFOA submission deadline for the Certificate of 
Achievement for Excellence in Financial Reporting.

Thank you
Jill A. Shaw, CPA
jill.shaw@hm.cpa
623-237-7951