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City auditors issue disclaimer of opinion for 2022 audit; missing documentation from component units cited
Summary
Independent auditors gave the City of Williamsport a disclaimer of opinion for the 2022 financial statements, citing missing documentation from related authorities and incomplete support for some city items. Auditors and city staff said they expect 2023 to improve if component units provide records and the city supplies additional support.
Zelenkovsky Axelrod, the city’s audit firm, presented the fiscal year 2022 audit to council on May 22 and issued a disclaimer of opinion for the city’s financial statements, saying auditors lacked sufficient documentation and support for certain items and component‑unit information.
Audit partner Kim Stank told council the financial statements were “very similar to prior years” but that the firm issued a disclaimer. Justin Bell (auditor) summarized that the government‑wide statement showed a deficit net position driven largely by long‑term pension and OPEB liabilities and that the general fund’s unassigned fund balance rose to about $4.3 million of a $7.2 million total general fund balance.
Why it matters: a disclaimer of opinion signals auditors could not obtain sufficient evidence to form an audit opinion on portions of the financial statements. The auditors said missing or unsupported information from component units — notably the regional transit authority (RVTA), the parking authority and some authority records — and incomplete support for certain items in the city’s records were primary reasons for the disclaimer.
City and audit staff said their goal is to move to a qualified or clean opinion for the 2023 audit. Staff reported that the 2023 accounting work had been prepared and that the city expects more complete documentation for 2023; auditors said component units will need to supply their own audits or supporting documentation if they remain component units.
Council and staff discussed next steps. City finance staff said they are in ongoing discussions with the parking authority and RDA to catch up outstanding audits; the parking authority has not had an audit since 2018 and the city is working to get the authorities current. Council asked what documentation is required from component units; auditors explained they need support for amounts reported, asset/debt ownership lines and testing evidence for controls.
No formal action to change city policy or remove component status was taken at the meeting; finance staff said they will continue to work with authorities and provide auditors the additional support needed for the 2023 audit.
