Branson audit is No. 1, sewer deficit is No. 2

On September 22, 2026, the Branson Board of Aldermen received the city’s annual financial audit. The review covered fiscal performance, legal reserve accounts and internal accounting for the year ending December 31, 2025. While the auditors from Hood & Associates CPAs gave the city a clean bill of health, they also made it clear there are administrative matters to be put right, not least in the way internal controls and utility fund deficits are handled.

Allison Ramsay, the Finance Director of the city, answered questions that Alderman Schulz had presented at an earlier meeting. One of his questions pertained to the allocation of tourism tax funds over the last 20 years. She said that after consulting legal and financial advisors, they confirmed the funds were properly allocated. Allison noted the municipal marketing fund stood at $1,789,000 at the end of 2025, with an unrestricted reserve of about $1.4 million, and that city staff has requested a formal plan to use some of that in 2026. She also confirmed the 76 Entertainment Community Improvement District is still considered a “component unit.”

Michael Keenan of Hood & Associates then took over to present the Annual Comprehensive Financial Report and the single audit of federal grants. He reported an unmodified or “clean” opinion from the auditors, the best assurance an independent party can offer. It certifies that the city’s financial records are as they should be under standard rules. There is real accountability here. The single audit reviewed compliance with federal grants, such as the Community Development Block Grant money put toward the Compton flood project and the Elevate Branson program. 

The auditors did flag one material weakness, however. Keenan described it as an oversight where city procedures let some material errors go undetected until the external team found them. Municipal finance staff has since recorded the necessary adjustments to bring the ledgers in line before publication. On the question of state or federal law, the audit found no non-compliance.

The report contains management recommendations for the long term. Of particular concern is a $3.2 million net operating loss in the water and sewer fund. Auditors are urging a rethink of utility rates; these are proprietary funds that have to stand on their own through user fees for everything from equipment upkeep to capital repairs. Other suggestions include establishing a centralized grant coordinator to simplify federal reporting and stay ahead of new national accounting standards.

When the floor opened for public comment, Cherry Webster asked the auditors about the tourism tax and the disclosures surrounding the $30 million appeal in court. Ramsay and Keenan said their work was based on professional standards and the letters from city attorneys as of August 31. Ashley Harkness also made a point of record: the petition the public was discussing was for a state audit, not something local.

The Board accepted the presentation into the record without further action. Staff will review the auditor’s input when they sit down for the 2027 budget and rate reviews. This is part of maintaining the strong accounting that keeps taxpayer resources in check and gives Branson citizens what they are owed in transparency.