City auditors give unmodified opinion for FY21 but flag recurring internal-control weaknesses

Hopewell’s independent auditors presented the city’s fiscal-year 2021 audit to council and reported an unmodified opinion on the financial statements, while also noting recurring material weaknesses in some internal controls.

David Foley of Robinson Farming Cox Associates told the council the firm issued an unmodified opinion on FY21 financial statements and that the city and schools received “no instances of noncompliance” under federal single-audit requirements. “We have, for FY 21 issued an unmodified opinion on the city's financial statements,” Foley said.

At the same time, the auditors reported material weaknesses focused on reconciliations and timely financial close procedures, consistent with findings in previous years. Foley said the internal-control findings were similar to prior reports and cited issues such as monthly bank reconciliations and receivable reconciliations.

City finance staff also presented third-quarter financials showing revenues and expenses trends and a projected positive year-end position for fiscal 2025. The treasurer reported upcoming tax-billing dates and delinquencies; staff projected roughly $24 million in cash at year end in bank accounts (not counting investments).

Foley said the FY22 audit work had begun and that the firm expects to complete FY22 by June and FY23 later in the year. Council members asked about corrective plans; Vice Mayor Joyner and others pressed staff on timelines and on using the audit results to guide operational fixes. A councilor suggested running a diagnostic bond-rating exercise once audits were current.