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City audit issues one finding, recommends cybersecurity and equipment policies
Summary
Independent auditor Patrick Lyle delivered an unmodified (clean) opinion on the City of Shelbyville’s June 30, 2024 comprehensive annual financial report, flagged one audit finding about donated infrastructure recording, and recommended written cybersecurity and equipment checkout policies.
An independent auditor told the Shelbyville mayor and city council that the city received a clean audit opinion for the fiscal year that ended June 30, 2024 but has one reportable finding and two recommended policy changes.
Patrick Lyle of Winnett and Associates gave the presentation and said the firm issued an “unmodified opinion,” the standard clean audit language. He told the council the financial statements were materially correct while noting one finding related to unrecorded donated infrastructure tied to subdivisions. “It came to light during the audit that several subdivisions weren't recorded,” Lyle said, and recommended controls to ensure donated streets, drainage and similar assets are entered into the city’s records.
Why it matters: the auditor said the city reports roughly $60 million in capital assets when the governmental and business-type columns are combined; incomplete recording of donated infrastructure can understate asset balances and related depreciation or maintenance responsibilities. Lyle also highlighted revenue trends: property tax revenues declined about $900,000 year-over-year while sales taxes now exceed property taxes as the largest revenue source. Investment earnings rose markedly (about $925,000 higher than the prior year).
Alongside the finding, Lyle offered two nonfindings labeled recommendations. He recommended the city adopt a written, comprehensive cybersecurity plan for general government systems and a formalized written policy for checking out and returning city equipment — including signed forms noting condition and dates. He said some cybersecurity steps exist but not as a single, cohesive plan and that state oversight is increasing for utilities: “Tennessee has actually started requiring your public utilities ... to have a written cybersecurity plan,” Lyle said.
Council members and staff raised no immediate objections and thanked finance staff for their assistance during the audit process. No formal action was taken during this study session on the finding or recommendations; the auditor invited questions about next steps and implementation.
