Del City earns clean audit opinion despite two accounting findings
Christopher Heim of HBC CPAs presents the results of the fiscal year 2025 audit at the July 20 Del City council meeting. Photo by Lea Terry
By Lea Terry
Midwest City Beacon
Del City received the highest possible opinion on its fiscal year 2025 financial audit despite auditors identifying two accounting issues that city officials say they are addressing.
Chris Heim with HBC CPA & Advisors presented the audit results during the July 20 Del City Council meeting. He said the city received a “clean opinion,” the highest rating an auditor can issue, meaning the city’s financial statements fairly present its financial condition.
“It means the numbers that are subsequent to our report can be relied upon by the council, outside agencies, bonding agencies and things of that nature,” Heim said.
The audit also showed improvement in the city’s overall financial position. Del City’s net position increased to $1 million in fiscal year 2025 from $473,000 the previous year. Total revenues remained steady at $20.3 million while expenses decreased 2%.
Heim said the city also corrected two findings identified in the previous year’s audit, including budget variance issues and a negative general fund variance.
Auditors reported two findings in the 2025 audit, both related to accounting procedures rather than the accuracy of the city’s financial statements.
The first finding involves the city’s accounting software and its effect on reconciling accounting records with bank statements. Heim said unresolved software issues require staff to complete part of the reconciliation process outside the software. The finding also appeared in last year’s audit and may require either updated software or a fix from the vendor.
Heim emphasized that the issue does not affect the accuracy of the city’s reported cash balance.
The second finding, which is new this year, involves cash transactions entered after the reconciliation process has been completed.
City Clerk Joseph Carroll said some accounts payable transactions are not being recorded correctly because they post to either the revenue or expense account instead of both, preventing the cash balance from updating properly.
Carroll said the city is manually entering transactions while working to correct the issue. Until the problem is resolved, no financial transactions will be entered without his approval.
