Millcreek's 2025 audit found no control deficiencies; its fraud self-assessment lost points only for internal audit

Millcreek's audit for the year ended June 30, 2025 carries an independent auditor's report dated Dec. 5, 2025. ^[2] Presenting it on Dec. 8, Jeff Miles of HBME told the council the city received a clean, unmodified opinion, that the auditors found no deficiencies in internal controls, and that the city complied with state requirements on budgeting, fees, fund balance and cash management. ^[1]

What the reports say

The report on internal control says the auditors "did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses," and that their tests "disclosed no instances of noncompliance or other matters" required to be reported. The state compliance report says Millcreek "complied, in all material respects, with the compliance requirements." ^[2]

Miles told the council the city was moving from basic financial statements to a full annual comprehensive financial report, and suggested capital asset software to help future audits. ^[1]

The General Fund in 2025

The General Fund took in $41,990,370 and spent $37,227,798 in fiscal 2025. Its transfers out were $5,627,811, compared with $4,327,811 in the final budget column of the budget-to-actual schedule. The fund's balance fell from $15,248,366 to $14,394,051, a decline of $854,315. ^[2]

Across all governmental funds, fund balances totaled $33,485,218, a decrease of $2,285,888. Net position for governmental activities rose $4,696,483. ^[2]

The fraud risk assessment

The city's fraud risk assessment, completed May 30, 2026 for the fiscal year ending June 30, 2026 and presented to the council June 22, scored 375 of 395 points. ^[3]

The city received full points on separation of duties, nine written policies, credentialed financial staff, ethics commitments, training, a fraud hotline and a formal audit committee. It scored 0 of 20 on having a formal internal audit function. ^[3]