Newcastle — Auditors for the City of Newcastle presented two reports on Nov. 10 and concluded the city’s financial statements presented fairly in all material respects and that the city complied in all material respects with applicable requirements for federal grant funds.

Chris Syme of the engagement firm told the board the independent financial statement audit resulted in a clean opinion, the highest level of assurance an auditor can give. "In our opinion, the financial statements referred to above present fairly in all material respects," Syme said.

Syme summarized key financial highlights from the fiscal year ending June 30, 2024: a combined statement‑of‑net‑position increase of about $2.8 million across all funds; combined government fund balance of roughly $8 million on the modified cash basis; and an unassigned general‑fund balance of about $1.4 million, approximately 13.4 percent of general‑fund revenues. He also reviewed major 2024 capital transactions, noting expenditures on the wastewater treatment plant (~$16 million), a fire station (~$10 million) and other capital outlays.

In the single‑audit (compliance) report — required because Newcastle’s federal receipts exceeded the single‑audit threshold — the auditor reported a clean compliance opinion. Syme said the audit identified one compliance finding related to collateralization procedures at Sooner Bank, described as a timing issue the bank and the city have corrected. "It wasn't significant compared to the balances you have," Syme said, and he advised that the timing issue should be resolved going forward.

After a brief question period, a board member moved to acknowledge receipt of the two audit reports. The motion was seconded and approved by roll-call. The council asked staff to include the auditor’s report in the public packet and to maintain monthly reporting from the bank to confirm collateralization moving forward.

Next steps: Staff will file the audit report with the appropriate state and federal repositories and ensure monthly collateralization reporting from the bank is received as described by treasury staff.