City auditor reports no material weaknesses, flags timing and control items

Sikich auditor Steve Trippie told the Bridgeton City Council on Sept. 3 that the firm issued an unmodified opinion on the city's 2024 financial statements but identified recurring control and reporting items that need attention. "We did not have any significant deficiencies or material weakness related to the controls at the city of Bridgeton," Trippie said. Trippie said auditors recorded several correcting adjustments in this year's statements, including recognition of certain software technology arrangement contracts, additional long-term pension and compensated-absence liabilities after implementation of GASB 1 0 1, and capital-asset and depreciation changes. "In the current year, we implemented GASB 1 0 1," he said. Why it matters: the audit shows no material internal-control failures but highlights operational items that can affect budgeting and long-term obligations if not addressed. Trippie recommended timelier internal financial reports, separation of escrow funds, updated accounting policies, and dual review of journal entries. Key findings included a $560,000 decrease in restricted cash and investments largely tied to TIF revenues, a $2.36 million net decrease in long-term debt, and adjustments to prior-year net position after GASB changes and removal of subordinated TIF debt. Trippie said escrow deposits outstanding for decades could be turned over to the state treasurer if claimants do not come forward and urged follow-up. Trippie also noted internal-control procedure gaps created after a vacancy in the accounting department: "Proper procedures require that you have at least 2 people looking at them," he said, referring to journal entries. He recommended formalizing compensating controls and updating accounting policies and procedures. No formal council action was taken at the hearing; the presentation was received and council members asked no substantive follow-up questions during the meeting. The audit presentation closed with the auditor offering to assist with policy updates under a separate engagement. Looking ahead: Trippie and the city said they will continue to monitor implementation of recommendations; council members requested that staff produce a remediation plan for outstanding audit comments in the coming weeks.