Staff Report

Town of Fountain Hills — History and Culture Advisory Commission (2026-01-07)

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Audit Results
Year Ended June 30, 2025
Town of Fountain Hills, Arizona
Presented by 
Joshua Jumper, CPA, CGFM 
Audit Partner

Requirements
The Town is required by State Statute to issue an annual audited 
financial report.
Federal law requires the City to undergo an annual single audit 
of federal financial assistance. – NOT REQUIRED FOR FY25
Effective September 29, 2021, ARS §9-481(H), as amended by 
Laws 2021, Ch 427, §1, auditors must present audit results and 
any findings to the Council in a regular meeting without the use 
of a consent agenda within 90 days of audit completion.

• Verify management representations regarding 
finances
• Demonstrate stewardship and accountability 
to:
• Review compliance with certain laws and 
regulations
• Governing body ultimately must ensure 
management fulfills its responsibility
3
• Federal agencies
• IRS
• Potential Creditors
• Potential bond holders
• Citizens
• Governing body
• Grantors
• State agencies
Importance of 
the Audit

Audit Process
• Spring 2025 - Engagement Letter Issued
• Summer 2025 - Preliminary Audit Procedures
• September 2025 – Final Audit Procedures
• October 2025 – Draft of Audit Report Sent to Management
• October 30, 2025 – Audit Reports Issued

Communication 
to Governance
Annual 
Comprehensive 
Financial Report 
Report on 
Internal Control 
over Financial 
Reporting 
Annual 
Expenditure 
Limitation 
Report
State 
Transportation 
(HURF) 
Compliance
Audit Reports Issued

Key Items from FY 2024-25
Unmodified (clean) audit 
opinion dated October 
30, 2025
6
No internal control 
deficiencies noted
Town below mandated 
expenditure limitation

Other Important Communications
• Communication to those charged with governance 
provided by the audit firm at the completion of the audit 
also includes the following:
• Engagement letter provided by the audit firm to 
management at the initiation of the audit
• Management representation letter provided by 
management to the audit firm at the completion of the 
audit

Other Important Communications
• 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

Questions?