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Council hears 2023 draft audit; auditors plan clean opinion, council accepts report
Summary
Auditors from Fosse Charles presented the draft 2023 city audit, reporting an unmodified (clean) opinion is planned, no disagreements with management, and two audit-driven correcting entries. The council voted to accept the 2023 audit.
Auditors from Fosse Charles presented the draft 2023 city financial statements and said they plan to issue an unmodified ("clean") opinion on the city's audit, and the City Council voted to accept the 2023 audit.
Eric Furman, a partner at Fosse Charles, told the council the firm is responsible for giving an opinion on the statements while management is responsible for preparing them. "We plan to issue an unmodified opinion or a clean opinion on the 2023 city financial statements," Furman said during the presentation.
The auditors noted the new accounting pronouncement GASB 96, which treats certain subscription-based information technology arrangements like leases and places the related liability on the statement of net position. Furman said the statements disclose the city's adoption of GASB 96 and showed the related liability in the leases and subscription-based information technology arrangements line of the liability section.
The auditors identified three significant accounting estimates they evaluated as part of the audit: the allowance for doubtful accounts on taxes receivable, the actuarial assumptions and valuation for OPEB under GASB 75, and pension liabilities under GASB 68. Furman said audit procedures determined those estimates were reasonable in relation to the financial statements as a whole.
Furman told the council there were no difficulties encountered during the audit and no disagreements with management. He said two correcting entries were agreed with management to reclassify a bank payment between the general fund and the capital projects fund and to record an appropriate due to/due from. He also said the auditors will obtain a representation letter from management after the draft financial statements are approved.
The firm noted that, in addition to the financial-statement opinion, the required supplementary information and the Yellow Book (government auditing standards) report also will receive clean opinions. The council later voted to accept the 2023 audit.
Votes at the meeting show the council approved a resolution to accept 2023 (the audit) during the session; the motion was approved by voice vote and affirmed in the meeting record as approved by the council.
