An external auditor for Fishers told city leaders that the 2024 financial audit produced unmodified (clean) opinions on the City’s annual comprehensive financial report (ACFR) and its single-audit of federal expenditures, but auditors flagged one material weakness related to an accounts-payable/retainage audit adjustment in the Fishers event-center construction fund.

Emily, the audit presenter from the firm that performs the city’s audit engagement, summarized results during the meeting. She said the audit opinions on the ACFR and the single audit were unmodified and that the single-audit work found no compliance findings or internal-control findings for federal programs tested.

Material weakness and other items
The auditors recorded one material weakness that stemmed from a recorded audit adjustment: the firm proposed increasing accounts payable and retainage payable for the Fishers Event Center construction fund by a combined amount the presentation described as approximately $13 million. That adjustment increased expense in the fund statements and added a capital asset on the government-wide statements; because of the size of the adjustment for that fund, auditors classified it as a material weakness in internal control over financial reporting. Audit staff said city and external accounting personnel are working to refine accounts-payable processes to reduce the risk of similar adjustments in future audits.

Other audit points highlighted by the presenter
- Single-audit status: The city was a low-risk auditee; the primary major program tested was the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) and audited federal expenditures were about $1.6 million, with CSLFRF at about $466,000. The auditor reported no compliance findings.
- Accounting standards: The city adopted GASB Statement No. 101 related to compensated absences; the auditor and city staff reviewed the standard and determined there was no material impact to the compensated-absence balance.
- Internal-control deficiency: A separate, lower-severity deficiency remained for payroll segregation of duties; auditors said compensating controls are in place and staff cost/benefit considerations keep the item at the deficiency level.
- Emerging guidance: The presenter noted changes to OMB uniform guidance, including the single-audit threshold increasing to $1,000,000, and that the city should monitor those changes for future federal-expenditure reporting.

Deliverables and next steps
The auditor said the ACFR, single-audit report and the required communication had been issued and would be available to council members. The presenter described the results as “clean or unmodified opinions on all of those deliverables” and said Baker Tilly and city staff would continue work to address the accounts-payable control item.

Ending
Council members thanked the auditor for the presentation and asked that the audit deliverables be circulated to the council and placed on the city’s file with the State Board of Accounts.