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Auditor issues clean opinion on Peoria 2024 financial statements; ARPA accounting required extra procedures
Summary
CliftonLarsonAllen presented the 2024 audit results to the Peoria City Council, reporting an unmodified (clean) opinion but noting follow-up work required because of $1.5 million of ARPA expenditures claimed in a prior fiscal year; the city and auditors also noted an anticipated audit finding about external review and a single compliance control.
The independent auditors CliftonLarsonAllen told the Peoria City Council Tuesday that they issued unmodified, or “clean,” opinions on the city's 2024 financial reports but had to perform additional procedures related to federal ARPA funds that were retroactively claimed in a prior year.
"We did issue unmodified or, in other words, clean audit opinions on all reports, all things that we issued," Adam Pulley, principal in charge of the 2024 audit, told the council.
Pulley explained that about $1.5 million of ARPA expenditures were retroactively claimed as prior-year federal revenue because the grant required funds be incurred, spent or obligated by Dec. 31, 2024. "That dollar amount was roughly $1,500,000 that essentially that funding should have been shown as revenue in f y 23," Pulley said. Because the amount was material, the auditors reopened portions of the FY 2023 single-audit testing universe to perform compliance testing on the additional population; they found no additional compliance problems but added a disclosure related to the financial statement cutoff.
Pulley also noted an anticipated, routine audit finding: because auditors assist with preparation of the financial statements, that interaction is disclosed as a control consideration. The single-audit testing for FY2024 also identified a compliance-control issue — reports to a grantor were submitted without a documented second-person review — which led to a separate report comment even though no noncompliance was found in testing.
Finance staff told council the audit work began in planning around February, fieldwork ran through spring and the report was finalized in July. The city finance director said annual audit costs average about $125,000 to $140,000 and that CliftonLarsonAllen has one year remaining on the current contract; council was told the city will consider audit-rotation options after that term.
Council unanimously received and filed the audit presentation.
