COVINGTON, Ky. — The City of Covington has once again demonstrated strong financial stewardship, earning an unmodified opinion — commonly referred to as a clean audit — on its Fiscal Year 2025 financial statements from independent auditors Barnes Dennig. 

This achievement marks the third consecutive year, from 2023 through 2025, that the City has received a clean audit opinion. 

In addition, while the prior two audits included several minor findings related to Section 8 documentation and fixed asset disposals (none of which impacted the unmodified opinions), the FY2025 audit contained no findings whatsoever. The absence of findings reflects continued progress and stability in the City’s financial and internal operating environment. 

The dedication of the City’s Finance Department was instrumental in supporting the audit process and ensuring a successful outcome. Their efforts have contributed significantly to maintaining strong financial controls and consistent compliance with reporting requirements. 

Key Highlights from the FY2025 Financial Statements 

General Fund Performance 

• The City’s General Fund balance at year-end totaled $33,217,671, exceeding the FY2025 budgeted balance of $29,041,341. 

• The increase was primarily driven by a year-over-year revenue increase of $28,249,843. 

• Major contributors included growth in payroll taxes, insurance license fees, and investment income. 

• Program revenues also rose due to increased capital grants received during the year. 

Total Asset Growth 

• Total City assets increased by $35,884,067 compared to FY2024. 

• The majority of this increase resulted from ongoing investments in capital assets associated with transformative projects such as the Covington Central Riverfront. 

• Long-term debt increased by $24,060,802 as the City issued debt to support planned capital improvement projects. 

Expenditure Management 

• General Fund expenditures decreased by $1,152,904 from FY2024, reflecting continued cost management efforts and disciplined budgeting practices. 

Transition of the Parking Authority 

• The Parking Authority, previously reported as an Enterprise Fund (Business-Type Activity), was fully removed from the City’s financial statements and transferred to the Parking Authority and its Board in FY2025. 

• As a result, Business-Type Activities show a net $0 balance on the FY2025 Statement of Net Position. 

Implementation of GASB 101 

• Adoption of GASB No. 101, “Compensated Absences,” resulted in a required adjustment reducing beginning net position by $1,487,015 on the City-Wide Statement of Activities. 

The Fiscal Year 2025 audit results further demonstrate Covington’s positive financial trajectory, supported by continuous improvement in financial processes, internal controls, and staff development within the Finance Department. 

The City remains committed to maintaining this high standard of transparency, accountability, and fiscal responsibility as preparations begin for the FY2026 audit cycle.