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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?