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Ways and Means committee forwards Brentwood audit showing unmodified opinions, flags minor single-audit vendor screening lapse
Summary
The committee reviewed the city audit that returned unmodified opinions, discussed a minor single-audit finding about vendor screening for a federally funded highway planning contract, and learned the city expects about $1.8 million in FEMA reimbursements that will be deferred into 2025.
The Brentwood Ways and Means Committee reviewed the city’s annual financial audit at its June 5 meeting and voted to forward the audit to the Board of Aldermen for approval.
The audit returned “unmodified opinions,” Andrew, the external auditor, told the committee, and covered three major federal programs: the highway planning and construction grant, American Rescue Plan Act (ARPA) funds and FEMA funding. He said, “We had three major programs that we've audited.”
The nut of the discussion was a single-audit finding described by the auditor as minor: the city did not perform a required vendor suspension/debarment screening step for one highway-planning contract funded with federal dollars. The auditor said the vendor ultimately was cleared and there are no further issues.
Committee members also heard that FEMA reimbursements recorded as incurred but unpaid led to a large negative change in fund balance for the year. The auditor reported, “we have about $1,800,000 worth of money from FEMA that you're still expected to receive,” and said that unpaid FEMA claims will be deferred into 2025 rather than recognized as revenue for the audited year. The audit summary presented general-fund and government-wide balances: a general-fund balance of about $9,000,000, governmental fund balances totaling about $22,900,000, and a net position near $77,000,000.
The auditor noted no fraud or legal matters and described internal controls related to cash receipts and period reporting as strong. He also said the recent accounting standard GASB Statement No. 101 on compensated absences did not affect the city’s reported balances. Michelle, city finance staff, confirmed the single-audit finding was minor and that there were no management comments.
After discussion the committee voted to send the audit to the Board of Aldermen for approval. The motion was made by Alderman Bola and approved unanimously by members present.
The audit will next appear on the Board of Aldermen agenda for formal acceptance and any further follow-up if the board requests it.
