8_CITY OF TEMPE AUDITOR'S REPORT FY25.PDF

Independent Auditor’s Report 
Honorable Mayor and Members of the City Council 
City of Tempe, Arizona 
Report on Audit of Financial Statements 
Opinions 
We have audited the accompanying financial statements of the governmental activities, the business-type 
activities, each major fund, and the aggregate remaining fund information of the City of Tempe, Arizona 
(City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which 
collectively comprise the City’s basic financial statements as listed in the table of contents. 
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 Tempe, Arizona, as of June 30, 2025, 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. 
Basis for Opinions 
We conducted our audit in accordance with auditing standards generally accepted in the United States of 
America and the standards applicable to financial audits contained in Government Auditing Standards, 
issued by the Comptroller General of the United States. Our responsibilities under those standards are 
further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our 
report. We are required to be independent of City of Tempe, Arizona, and to meet our other ethical 
responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe 
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit 
opinions. 
Change in Accounting Principle 
As described in Note 1 to the financial statements, the City implemented the provisions of GASB 
Statement No. 101, Compensated Absences, for the year ended June 30, 2025. In addition, the City also 
implemented GASB Statement No. 102, Certain Risk Disclosures. Our opinion is not modified with respect 
to these matters. 
Responsibilities of Management for the Financial Statements 
Management is responsible for the preparation and fair presentation of the financial statements in 
accordance with accounting principles generally accepted in the United States of America, and for the 
design, implementation, and maintenance of internal control relevant to the preparation and fair 
presentation of financial statements that are free from material misstatement, whether due to fraud or 
error. 
In preparing the financial statements, management is required to evaluate whether there are conditions 
or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue 
as a going concern for one year beyond the financial statement date, including any currently known 
information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements 
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are 
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that 
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance 
and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing 
standards and Government Auditing Standards will always detect a material misstatement when it exists. 
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting 
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the 
override of internal control. Misstatements are considered material if there is a substantial likelihood 
that, individually or in the aggregate, they would influence the judgment made by a reasonable user based 
on the financial statements. In performing an audit in accordance with generally accepted auditing 
standards and Government Auditing Standards, we: 
 
• 
Exercise professional judgment and maintain professional skepticism throughout the audit. 
• 
Identify and assess the risks of material misstatement of the financial statements, whether due to 
fraud or error, and design and perform audit procedures responsive to those risks. Such 
procedures include examining, on a test basis, evidence regarding the amounts and disclosures 
in the financial statements. 
• 
Obtain an understanding of internal control relevant to the audit in order to design audit 
procedures that are appropriate in the circumstances, but not for the purpose of expressing an 
opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is 
expressed. 
• 
Evaluate the appropriateness of accounting policies used and the reasonableness of significant 
accounting estimates made by management, as well as evaluate the overall presentation of the 
financial statements. 
• 
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, 
that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable 
period of time. 
 
We are required to communicate with those charged with governance regarding, among other matters, 
the planned scope and timing of the audit, significant audit findings, and certain internal control related 
matters that we identified during the audit. 
 
Other Matters 
Required Supplementary Information 
Accounting principles generally accepted in the United States of America require that the Management’s 
Discussion and Analysis, budgetary comparison information, net pension liability information, and other 
postemployment benefit plan information, as listed in the table of contents, be presented to supplement 
the basic financial statements. Such information is the responsibility of management and, although not a 
part of the basic financial statements, is required by the Governmental Accounting Standards Board, who 
considers it to be an essential part of financial reporting for placing the basic financial statements in an 
appropriate operational, economic, or historical context. We have applied certain limited procedures to 
the required supplementary information in accordance with auditing standards generally accepted in the 
United States of America, which consisted of inquiries of management about the methods of preparing 
the information and comparing the information for consistency with management’s responses to our 
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic 
financial statements. We do not express an opinion or provide any assurance on the information because 
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any 
assurance. 
 
Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively 
comprise the City’s basic financial statements. The Combining and Individual Fund Financial Statements 
and Schedules are presented for purposes of additional analysis and are not a required part of the basic 
financial statements. Such information is the responsibility of management and was derived from and 
relates directly to the underlying accounting and other records used to prepare the basic financial 
statements. Such information has been subjected to the auditing procedures applied in the audit of the 
basic financial statements and certain additional procedures, including comparing and reconciling such 
information directly to the underlying accounting and other records used to prepare the basic financial 
statements or to the basic financial statements themselves, and other additional procedures in 
accordance with auditing standards generally accepted in the United States of America. In our opinion, 
the Combining and Individual Fund Financial Statements and Schedules information is fairly stated in all 
material respects in relation to the basic financial statements as a whole.   
 
Other Information 
Management is responsible for the other information included in the annual report. The other information 
comprises the Introductory Section and Statistical Section but does not include the basic financial 
statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover 
the other information and we do not express an opinion or any form of assurance thereon.  
 
In connection with our audit of the basic financial statements, our responsibility is to read the other 
information and consider whether a material inconsistency exists between the other information and the 
basic financial statements, or the other information otherwise appears to be materially misstated. If, 
based on other work performed, we conclude that an uncorrected material misstatement of the other 
information exists, we are required to describe it in our report. 
 
Other Reporting Required by Government Auditing Standards 
In accordance with Government Auditing Standards, we have also issued our report dated December 15, 
2025, on our consideration of City of Tempe, Arizona’s internal control over financial reporting and on our 
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and 
other matters. The purpose of that report is solely to describe the scope of our testing of internal control 
over financial reporting and compliance and the results of that testing, and not to provide an opinion on 
the effectiveness of the City of Tempe, Arizona’s internal control over financial reporting or on 
compliance. That report is an integral part of an audit performed in accordance with Government Auditing 
Standards in considering City of Tempe, Arizona’s internal control over financial reporting and compliance. 
 
 
 
 
Heinfeld, Meech & Co., P.C. 
Scottsdale, Arizona 
December 15, 2025