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Olean finance committee hears FY2024 audit; nonqualified opinion issued, repeated control findings flagged
Summary
External auditors delivered a nonqualified opinion on the city—s financial statements for the year ending May 30, 2024, but reported recurring internal-control and federal-award reporting weaknesses and recommended training and corrective actions.
The Olean Finance Committee on April 1 heard a presentation of the city—s audit for the year ended May 30, 2024, during which outside auditors issued a nonqualified opinion on the financial statements but identified recurring internal-control findings and federal-award reporting errors.
The auditor, Vince of ReWorks & Company, told the committee: "We issued a nonqualified opinion on statements." He said the independent auditor—s report concludes the financial statements were prepared "in accordance with the common principles of general assembly" (the auditor—s language), and that separate reports on internal control and compliance under Government Auditing Standards and the Uniform Guidance accompany the opinion.
Why it matters: a nonqualified opinion indicates the auditors found the financial statements to be presented fairly, but the accompanying reports noted deficiencies that the auditors said have recurred in prior years. Those findings relate primarily to preparation of journal entries, account reconciliations and federal-award reporting (ARPA reporting), areas the auditors said require strengthened procedures and staff training.
In presenting the government-wide and fund financial statements, the auditors highlighted stability across five years on the balance sheet lines but noted erosion in general-fund reserves. The audit shows the city—s year-end general fund balance at about $1,810,402, the water fund equity near $385,000 and the sewer fund equity at roughly $3,000,000, figures the auditor pointed the committee to on the combined balance sheet.
Committee discussion focused on next steps. Vince said the firm will work with city staff to provide training and help implement policies, and the committee requested a corrective-action plan and follow-up in two months on progress resolving recurring reconciliation and journal-entry issues.
The committee did not take a formal vote on the audit presentation itself; members were asked to submit follow-up questions to the mayor and staff so the council can consider corrective steps as part of budget planning.
