Independent auditors give city an unmodified ('clean') opinion on 2024 financial statements; two nonmaterial findings reported

Independent auditors from RubinBrown presented the results of the City of Independence's fiscal year 2024 audit to the council April 28, delivering an unmodified opinion on the basic financial statements while noting findings that auditors classified as control deficiencies rather than material weaknesses.

Chester Moyer, audit partner with RubinBrown, told the council the firm audited the city's 06/30/2024 financial statements and the required federal single-audit work. "Our opinion, I'll start with the technical answer, is an unmodified opinion. The street term would be a clean opinion," Moyer said. He said the auditors found no material misstatements left uncorrected.

Moyer described two reportable findings required by government auditing standards and single-audit guidelines. One finding related to payroll testing: auditors sampled 40 employees and identified one payroll error that management corrected and for which procedures were amended. The second finding, from the federal single-audit procurement testing, involved vendor screening: the auditors noted an instance where testing did not adequately document whether a vendor was suspended or debarred under federal rules. Moyer characterized remaining recommendations as non-reportable operational suggestions carried forward from prior years: improved capital asset recording in the Munis system, more frequent utility-billing reconciliations and efforts to shorten the financial close process.

Councilmembers asked whether RubinBrown's independence limited the firm's ability to do other advisory work; Moyer summarized the professional independence framework and said auditors cannot audit work they previously performed because that would compromise independence. He also explained roles and typical triggers for a forensic accounting engagement, saying forensic accounting services are generally used when litigation or a specific scope is needed and that such engagements are costly and require precise scoping. "Forensic accounting does exist. It's very useful in litigation. It's quite costly to do and, the results are often, well, they're uncertain frankly for what, you know, what the cost is in order to do those services," Moyer said.

Moyer and councilmembers discussed the practical impacts of a state auditor review: he said any third-party audit requires staff time and document production and that the financial personnel would respond to such requests. The auditors concluded the city's audit on schedule; Moyer said management's selection of accounting policies and estimates was reasonable and that the city received normal audit scrutiny including evaluation of actuarial inputs for other post-employment benefits.

No formal council action was taken during the presentation; Moyer urged councilmembers to raise specific audit questions while the audit partner was present.