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CRA auditors report 'unmodified' opinion for FY 2023-24; two immaterial items noted
Summary
External auditors gave the Community Reinvestment Agency (CRA) an unmodified opinion on fiscal year 2023-24 financial statements, flagged two immaterial misstatements tied to the Gallivan Center, and said no internal-control deficiencies were found.
Salt Lake City's Community Reinvestment Agency heard a presentation on Feb. 11 from the agency's external auditor, who issued an unmodified opinion on the agency's fiscal year 2023-24 financial statements but identified two immaterial misstatements tied to the newly separate Gallivan Center column.
The auditor, Michael Nicholson, partner at audit firm I Bailey, told the CRA Board that the firm issued two opinions this year because the Gallivan Center now appears as a discrete component unit in the redevelopment agency's financial statements. "The opinion that we issued was an unmodified opinion on both opinion units," Nicholson said.
The audit report, Nicholson said, followed applicable professional standards and provided reasonable — not absolute — assurance. He told the board the audit identified two immaterial items: an invoice of about $15,000 the auditors believe should have been accrued and a roughly $2,500 difference in accounts receivable aging. Management elected not to adjust the statements for those items; Nicholson said the net effect is an understatement of unrestricted net position of approximately $18,000, below the firm's materiality threshold.
Nicholson also discussed significant estimates in the statements. He described the net pension liability as actuarial and prepared by Utah Retirement Systems and noted the allowance for loan losses is small, supported by underlying collateral values and the agency's foreclosure remedies. He said the audit did not produce a separate internal-control deficiencies letter and that no significant findings related to internal controls or compliance were reported.
Board members had brief questions about the immaterial items and how they would be handled going forward. Nicholson said the items were identified during the audit and "will be incorporated into next year's audit," and that a management representation letter had been received at the close of the audit.
The auditor and staff also clarified why the Gallivan Center was audited as its own opinion unit: because the redevelopment agency holds 51% ownership of the center under a new agreement, the center was treated as a discreetly presented component unit this fiscal year.
No formal vote on the audit appears in the transcript; the presentation closed after questions and brief discussion.
Board members thanked the auditor and staff for the presentation and moved on to other business.
