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External auditors give Seattle Public Utilities a clean 2024 audit; no material internal-control weaknesses found
Summary
Moss Adams (now merged with Baker Tilly) reported unmodified opinions on Seattle Public Utilities' 2024 financial statements for water, drainage/wastewater and solid waste and found no material weaknesses or significant deficiencies in internal control; auditors noted one new GASB standard (compensated absences) had minimal impact.
External auditors reported to the Parks, Public Utilities and Technology Committee on June 11 that Seattle Public Utilities' 2024 financial statements received unmodified (clean) audit opinions and that auditors found no material weaknesses or significant deficiencies in internal controls.
Representatives from Moss Adams (which informed the committee of a recent merger with Baker Tilly during the presentation) said they completed separate audits of the water, drainage and wastewater, and solid-waste funds. Lead auditor Keith Simovic summarized the results as a clean opinion on each utility's financial statements and told the committee that detailed testing of contracts, invoices and supporting documentation supported those findings.
Audit scope and findings: Auditors said their work included tests of accounting policies, management estimates (including accounts receivable allowances, depreciable lives, environmental liabilities, litigation contingencies and landfill closure-care obligations), and internal controls. Auditors reported no significant difficulties working with SPU management, no corrected or uncorrected misstatements requiring disclosure, and no disagreements with management's accounting conclusions.
The audit team also noted adoption of a new Governmental Accounting Standards Board standard related to compensated absences (GASB 101) for 2024; management concluded the city's policies were already closely aligned with the new standard and the change had minimal impact. Auditors emphasized the role of SPU finance staff in assembling documentation and said the audit supports the citywide financial statements and the State Auditor's Office work.
Moss Adams presenters (Lori Tisch, Keith Simovic and Anna Waldron) described major audit emphasis areas — cash and investments, receivables, bond-related accounts, accrued liabilities, revenue and expense recognition and net position — and said the audit work supports bond market disclosures. They reiterated that SPU's financial position and reporting are reliable for stakeholders, bondholders and the State Auditor's Office.
Committee members thanked the audit team and SPU staff; no committee action was taken on the audit presentations beyond receiving the reports.
