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Baker City accepts FY2023 audit; staff outlines corrective actions for internal control findings
Summary
Council accepted the city’s audited financial statements (fiscal year ending June 30, 2023). Auditors issued an unqualified opinion but noted significant deficiencies and material weaknesses tied to utility billing and staffing turnover; staff described corrective steps and will file required plans of action for federal single-audit findings.
Baker City — The Baker City Council on Jan. 14 accepted the independent audit for the fiscal year ended June 30, 2023, receiving an unqualified opinion while also discussing several audit findings and staff plans to address them.
The city’s audit letter, prepared by auditors (referred to in the record as Dickey and Trevor), was dated Dec. 20, 2024. City Finance staff presented the management discussion and analysis and highlighted that the audit was late; staff said the delay was partly attributable to turnover in the finance department and to the need for a single audit because the city expended more than the federal threshold for federal funds in the audit year.
The auditors issued an unqualified opinion on the financial statements but identified four prior-period adjustments and reported significant deficiencies and material weaknesses, mainly related to utility billing controls, unbilled receivable calculations, and some budgetary over-appropriations. Staff reported that many of the internal-control items have been or are being addressed, including reimplementing secondary review procedures for billing and retraining staff; public works staff were assisting interim reviews while finance hires are completed.
The audit included a federal single-audit report covering federal programs (staff cited ARPA funds and other federal receipts). The single-audit threshold (the requirement to perform a single audit when federal expenditures exceed the federal threshold) and reporting for federal awards were discussed; staff said the city expended roughly $1.4 million in federal funds during the year and thus required the single audit procedures.
Staff said they will submit required corrective-action plans to state and federal reviewers and that draft actions will be part of upcoming administrative work to stabilize finance staffing and close out prior-period items. Council moved, seconded and voted to accept the financial statements; the motion carried with no recorded opposition.
Council complimented public-works staff for a separate safety milestone noted in the meeting — 10 years with no time-loss injuries — and thanked finance staff for progressing on corrective actions.
